Best practices in achieving an efficient reconciliation system

Abstract

An efficient reconciliation process can act as a safety net for investment managers' operations areas. Key factors for success include an effective pre-reconciliation data collection and normalisation programme, followed by the adoption and promotion of industry standards to drive down cost and improve timing and frequency of cash, transaction, and position reconciliations. Best practices can set a firm apart from the competition or can satisfy the requirements of an audit or examination. This paper will examine a typical US global asset manager and the related challenges, risks and best practices.