Collective Investment Funds

Management Information Systems

The board and management must have adequate information systems to access, control, and monitor the risks posed by bank-administered CIFs. In addition to the bank’s core trust accounting system, banks administering CIFs customarily use tools to manage accruals, assess fees, and perform CIF unit valuations. These tools range from spreadsheets to sophisticated programs, many of which are created by vendors. The bank should ensure that its information systems are adequate given the nature and complexity of the activities performed. Examples of management information system (MIS) reports used to oversee CIF activities include:

• Financial recordkeeping, such as automated accounting systems designed for the administration and operation of CIFs.

• Senior management information reports to monitor risk, compliance with policies, and the financial performance of the CIFs. These include financial reports, audit reports, compliance reports, control self-assessments, and legal reports.

• Administrative reports to keep track of the day-to-day administration requirements for each fund. These include cash management reports, transaction reports, reports on the timeliness of valuations, and other types of tickler reports.

• Investment performance reports, such as portfolio reviews and transaction reports, for each fund.

• Statements and presentations for customers, including periodic accountings and the annual financial report for each fund.

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