Use Case 1: Enhanced Efficiency on Continuous Audit (Trial Balance API)

Company profile – an international asset management company that requires a continuous audit for their funds with their auditors to support error checking and data verification and oversight

The challenge

Client’s auditors regularly audit the fund’s financials to check for errors and clients may require the data to prepare reports for regulatory purposes, oversight and for investors’ information. To conduct the auditing process more efficiently, client’s auditors have been adopting a Continuous Audit model to assess risks and identify anomalies on a regular basis with the aid of technology. The automated model will need to receive the detailed fund financial information timely for auditing and errors checking. Currently, client’s auditors obtain the fund financial information via group’s multiple delivery channels such as emails. This can lead to delay and reduce the efficiency of the automated Continuous Audit model as it is dependent on the availability of the fund financial data.

The solution

The asset management company and auditors can integrate HSBC Securities Services’ API within their Continuous Audit model in order to access the latest and historical fund financial information. Clients and their auditors will be able to create a connection between the API and the Continuous Audit model for the API to feed the data into the model instantaneously and automatically once the clients call the API. This will eliminate any delays on receiving the fund data and maximize the efficiency of oversight and the auditing processes. With a highly efficient, accurate and automated auditing process, clients and their auditors can easily identify errors, and highlight these for resolution. At the same time, they will also be able to closely monitor and assess risks and take precautionary measures for risk mitigation, which can protect the interests of the investors as well.

Benefits

• Clients and auditors can automate the data feeding process to the Continuous Audit model to maximize efficiency
• Clients and auditors can check for errors and assess risks more frequently with a high quality of data source for better risk control
• Less time spent in requesting the fund accounting information via multiple delivery channels

Use Case 2: Efficient Access and Transfer of Data (Cash Analysis API)

Company profile – an international asset management company that transfers data to the depositary and the auditors on a regular basis for concurrent audit or any other purposes

The challenge

There are different types of fund data such as holdings and ledgers that are included in the fund’s balance sheet and income statement. The asset management companies will need access to this data and to send this information to the depositary for regulatory purposes and the auditors for auditing purposes. As multiple types of data are needed, client’s operations team will need to wait for the fund administrators to generate different datasets from their system. As a result, the efficiency of the data transfer process is dependent on the fund administrators running the different datasets and sending via email or other data transfer channels.

The solution

The asset management company can integrate HSBC Securities Services’ API within their own systems in order to enhance the efficiency of access to the data or to transfer the data to 3rd parties like the depositary and the auditors. The company can build a connection between their platform and HSBC Securities Services’ API. When the company requests any types of data, the company can call the corresponding APIs to obtain the data immediately to view or send to the relevant parties without having to manually request the data from the fund administrators. The lead time from the fund administrations is completely eliminated, maximizing the efficiency, and the company can call the APIs to obtain the data whenever needed. This can also ensure the data could be transferred to the relevant parties on the pre-agreed timelines.

Benefits

• The asset management company can obtain the fund cash information 24 x 7 across its managed funds
• Enhanced efficiency on the data transmission process as data sharing between the company and the fund administrator is automated
• Reduced chance of errors and delays in the data sharing process as manual effort is reduced and the process is automated

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