Independent Book of Record

YOUR SINGLE SOURCE OF TRUTH

INDEPENDENT
BOOK OF RECORD

What is an Independent Book of Record?

Also known as an Investment Book of Record (IBOR), it represents all the records that constitute a portfolio. Essentially, it is your ‘single source of truth’ for all account, security and transactional records.

The Securities Regulators emphasize the importance of reconciling the Investment Book of Record against the Custody Book of Record (CBOR). The reconciliation ensures accuracy, transparency and compliance within the industry.

WHY IS YOUR OWN BOOK OF RECORD IMPORTANT?

Risk Mitigation

Reconciling IBOR against CBOR helps mitigate operational risks. Discrepancies between these records can lead to errors in investment decisions, settlements and reporting (i.e., incorrect book values, missing cash flows, performance etc.).

Investor Protection

Regulators prioritize investor protection. Accurate records are essential to safeguard client assets. When IBOR and CBOR are reconciled, investors can trust that their holdings are accurately reflected.

Regulatory & Client Reporting

Accurate records are crucial for regulatory reporting. Regulators rely on consistent data to monitor market activities, detect anomalies, and enforce rules. Reconciliations ensure that the reported positions align with actual holdings.

Transparency & Accountability

Reconciliation promotes transparency. Wealth Managers can demonstrate accountability by maintaining accurate records. Investors, Regulators and other stakeholders benefit from clear, reconciled data, that everyone understands.

Operational Efficiency

Efficient reconciliation processes streamline operations. Portfolio Managers can focus on value added client activities rather than resolving discrepancies, while relying on one source of truth for day-to-day operations.

Meeting Regulatory Standards

The Compliance and Registrant Regulation Branch of the Ontario Securities Commission (OSC) has outlined how Portfolio Managers should be addressing key issues*:

Implement a process to regularly reconcile client's assets and security positions in its portfolio management system.
Have written policies and procedures on the firm's reconciliation process.
Maintain documentation detailing both reconciled and or unreconciled balances, explanations of any unreconciled balances and the steps taken to remediate unreconciled balances.
Maintain adequate documentation to evidence the reconciliation process including its preparation, review and approval.
Perform reconciliations on a timely basis.

*OSC Staff Notice 33-755 published July 27, 2023

PROFESSIONAL SERVICES

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The Harmony Advantage

Harmony stands out as one of the few portfolio management systems in the market that is constructed based on an independent book of record, which you retain full control over.

Comprehensive Reconciliation

Our comprehensive reconciliation system includes robust functionality that generates exception reports. These reports notify you whenever discrepancies arise between your records and the custodian’s.

Customizable Account Structure

Leverage independent account and security masters to create a hierarchical arrangement for organizing accounts and holdings that aligns with business needs while ensuring the necessary accuracy for maintaining your own records.

Data Integration

Integrate data from diverse sources, such as custodians, market data providers, and external CRM systems.

Data Import Customization

When working with custodian files, you have the flexibility to customize which data is imported and what remains unused. This way, you can focus on utilizing only the information that isn't already captured independently.