Improving TPA Operations

The Case

A global third party administrator (TPA) which provides middle office, fund accounting, transfer agency and custody services required assistance in defining their operating model for managing the ongoing services to an asset management firm.

We were requested to provide leadership in the analysis of middle office processing and Investment Book of Records (IBOR) reporting in Europe as the firm had limited experience in these areas.

Our Approach

We initially identified a number of deficiencies after reviewing all current operating model documentation and conferring with the relevant parties. There was a lack of both a standardised operating model as well as operating model documentation.

Working closely with the product owners and operational management, we defined and documented the operating model to support middle office servicing including trade processing, corporate actions, reconciliations, collateral management, ETD margining and OTC pricing.

Representing the TPA, we presented and argued for the proposed operating model and associated service provision to the asset management firm. We liaised the necessary improvements to construct the optimal operating model by agreeing on updates with the asset management firm and through clearly defined IT development.

Additionally, we reviewed the operating model to support IBOR reporting and this involved analysing the core processes for providing accurate and timely data to the asset management firm.

The End Result

Overall, by clearly defining and agreeing the operating model between all stakeholders, the TPA was able to successfully take control of a set of services and funds from a competitor. Furthermore, we contributed to the TPA’s strategic product offering by working closely with the relevant product owners and project team.