Milestone Group, a subsidiary of BNY Mellon and the global fintech firm known for digital innovation in investment processing, today launched a new Fair Value Control solution. This new solution is for teams responsible for the administration and compliance of the fair value process and ensuring that funds’ securities are correctly valued in accordance with the policy set forth by their governing parties.
Fair Value Control’s purpose-built workflows provide automation, transparency, and control to the end-to-end fair value determination process. It unifies stakeholders involved in the process providing a centralized solution for monitoring, decision-making, and implementation of fair value prices.
This ground-breaking solution leverages the proven pControl funds platform that currently supports over USD 20 Trillion in assets for mission-critical business functions across investment markets.
“The solution addresses a neglected area across the market in terms of meaningful automation both for the operational teams and the pricing committees respectively,” said Robert Proctor, Head of Product – Oversight and Control at Milestone Group. “We have developed and refined these capabilities in conjunction with leading industry players looking to improve upon their existing processes.”
Milestone Group’s new solution is designed for securities valuation teams to provide a more efficient process. It reduces operational risk through systematic controls over often fragmented processes and manual handoffs. The solution also improves governance and provides insights to Fund Managers and Fund Boards. Fair Value Control is constructed for clients globally, with the launch initially focused on the US, given industry timelines relating to SEC Rule 2a-5. However, the fair value process is common across the industry and the need for a more robust solution is universal.
Security valuation teams and pricing committees now have access to standard libraries of validations, controls, workflows, and reporting to demonstrate adherence to best practices.
Recent independent surveys and our own observations confirm that there is significant market interest in taking advantage of a specific market standard solution for the fair value process. This implies demand for solutions that are more tailored to the fair valuation process and can help firms to fully satisfy the higher standards, particularly transparency and auditability demanded by market expectations and new regulations.
Milestone Group’s President, Geoff Hodge, added, “Our engagement with forward-thinking industry players has allowed us to create the first off-the-shelf solution for fair value determinations, enabling best practice to be realized within a highly automated environment. This demonstrates our ongoing commitment to innovation to address evolving industry challenges.”