Fidelity Information Services Wealth Management is expanding its information server to determine mutual fund breakpoints. The enhancement will improve exception reporting to diagnose company-specific breakpoints and to identify eligibility as stipulated by the fund.
"This is a manual process at most of our broker/dealer clients' shops, and it is too easy to miss account relationships that qualify for the break points," said Kathy Baum, product manager for FIS Wealth Management.
Fund companies are responsible for designing breakpoints, but once they are established, the Securities and Exchange Commission and the NASD require mutual funds to honor the breakpoints across family members, Baum said.
Fidelity Information is offering the product to existing clients, which include CIBC, Royal Bank of Canada and Bank of Montreal, but did not release details of the firms with which it was negotiating.