he Mantas Behavior Detection technology
, which is used by financial firms to detect such bad behavior as money laundering and front running, can also ensure the correct charge for mutual fund purchases. Mantas
is introducing this breakpoint analysis feature in the new version of its Broker Surveillance Monitor
, which is being implemented for clients this year.
Unlike simpler approaches, Fairfax, Virginia-based Mantas can analyze and monitor investments on a more complex basis -- over a period of time; through one account or through a group of related accounts; and in a single mutual fund or a group of funds in the same fund family.
"Identifying clients and families that deserve better pricing requires a technology that can link related accounts like those that are part of a household but may not be identified as such, analyze purchases within a family of funds, and monitor purchases over time," said Jim Hayden
, Chief Strategy Officer of Mantas. Behavior detection technology harnesses sophisticated data mining tools to analyze millions of records.
When mutual fund purchases reach a certain dollar level, called a breakpoint, the individual or family of investors are entitled to pay a discounted fee to purchase fund shares.
In recent weeks, the National Association of Securities Dealers
(NASD) and the Securities and Exchange Commission
(SEC) have alerted the public that not all investors may have received the discounted pricing they deserved. It was found that some firms may not have the tools to correctly determine the pricing investors should receive.
The Mantas platform can appropriately calculate these fees because it looks at activity over time and across accounts, analyzing transactions not just in isolation but also in the context of other actions and records.
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