Investment managers rely on an array of high-fangled electronic tools to execute the most complex program trading and algorithmic trading strategies. And brokerage firms and banks can pretty much communicate with their institutional clients electronically in a matter of minutes if not seconds or even microseconds.

But such is not the case when it comes to managed accounts. There, where brokerages and banks sell customized investment services to wealthy individuals, investment managers and the sponsors of such programs rely heavily on paper to calculate and divide their cut of the fees involved. The result: "revenue leakage" for both sides. That means fees going unreported and undelivered.

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