Category: Blue Sky, Compliance

Helping Part the Clouds for Blue Sky Compliance

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Boston Financial expands our compliance offering

Blue SkyWhen most people hear the words “Blue Sky”, they think of sunny days and have a feeling of freedom and clarity. That’s not likely the case for those at asset management firms, who hear the term and think of an onerous regulatory undertaking. Although the expression allegedly comes from a ruling meant to protect investors from investments that had “as much value as a patch of blue sky”, compliance with the regulatory requirements can often result in a cloudy horizon.

Blue Sky administration is a critical yet challenging undertaking for asset management firms to handle in-house. With the continuing shift towards omnibus recordkeeping, oversight of securities sales has become more cumbersome. Meeting state-level disclosures and handling the wide range of data feeds is a complex and costly endeavor. Non-compliance and the risk of penalty only increase the challenge.

Not surprisingly, clients have greeted Boston Financial’s entry into the Blue Sky Administration business with great interest. Rather than question why we are providing Blue Sky services, we are fielding questions about the depth of our offering and how quickly we can help. All seem to agree that our expansion into this space is a logical extension of our compliance offering.  Meeting Blue Sky requirements involves having knowledge and capabilities in data management, state and federal regulation, reporting and financial intermediary administration. These are core Boston Financial strengths.

Boston Financial provides preparation, filing and exemption processing services, customized reporting and sales registration data, all within a framework of oversight by internal and external auditors. As a transfer agent, we have direct access to sales data, allowing us to closely examine transactions and identify eligible exemptions. We receive in excess of 150 daily transmissions related to Blue Sky, and that number is increasing. The result is a more integrated, streamlined process that helps to reduce client risk and registration costs.

While we can’t control the actual weather, Boston Financial can help keep the proverbial Blue Skies clear.

Craig Hollis

Craig Hollis

Craig joined Boston Financial in July of 2004. Craig has 32 years of mutual fund transfer agency experience in which time he has been responsible for managing numerous operational and support groups including: financial control, transfer agent and blue sky compliance, tax reporting and withholding, intermediary compensation, transaction processing and offshore distribution and servicing. Craig is currently responsible for the regulatory oversight of Boston Financial’s Transfer Agent activities as well as all operational aspects of Boston Financial’s compliance program including a 22c-2 full service solution and Blue Sky administrative services. Additionally, Craig represents Boston Financial in periodic Regulatory Compliance Advisory Group Sessions (RCAG) and is active in the industry, serving on the ICI Transfer Agent Advisory Committee, ICI Abandoned Property Task Force, ICI State Related Issues Working Group, ICI subcommittee on Money Market Reform (Institutional vs. Retail), NICSA Compliance Risk Committee, the Securities Transfer Association and has been a speaker at numerous industry events.

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