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FundPOINT 529 Data
A single-source data solution to manage multi-layered 529 savings plan information
- Improve operational efficiency with a single-source data feed to manage
multi-layered 529 savings plan information
- Reduce regulatory risk associated with recent MRSB regulations regarding
tax benefits disclosure, suitability, and basic customer protection obligations
- Enhance return on investment with a 529 data solution that simplifies compliance, freeing up time and resources for greater sales revenue
Overview
Favorable tax legislation and rising college costs have spurred a revival of 529 college savings plans. Consequently, competition has intensified as 529 plan providers scramble to add new product features, lower their fees, and upgrade investor benefits. The regulatory environment has also changed as the Municipal Securities Rulemaking Board (MSRB) has adopted rules and regulations for 529 plans that are comparable to NASD practices pertaining to sales of mutual funds.
But for financial intermediaries, 529 savings plans pose a more daunting compliance dilemma than mutual funds. With multiple parties involved in the investment process - such as the states, investors, program managers, investment managers, and broker-dealer firms - 529 college savings plan information is a complicated amalgam of three levels of data:
- Plan level - data captured from plan disclosure documents;
- Portfolio (investment option) level - data captured from multiple sources such as plan disclosure documents, plan websites, S&P CUSIP database, and direct contact with 529 plans; and
- Underlying mutual fund level - data captured from underlying fund SEC filings on EDGAR
The simple fact of the matter is that 529 plan data is much more decentralized than mutual fund data. Which begs the question: How can 529 plan advisors meet growing investor demand for 529 plan solutions while managing compliance required by industry regulators?
The Solution: NewRiver's FundPOINT® 529 Data
For financial institutions facing various challenges presented by 529 plan information, NewRiver's FundPoint 529 Data product can become an essential foundation to access accurate information from multiple sources that can be used to:
- Provide important disclosures to customers;
- Perform 529 transaction edits and supervision;
- Provide background information for completion of 529 applications;
- Calculate fees and commissions; and
- Verify breakpoints and state tax advantages.
Backed by NewRiver's process technology for sourcing 529 plan data from multiple sources, FundPOINT 529 Data offers a streamlined, centralized approach to access 56 data points for 529 plans - improving operational efficiency, accuracy, and compliance adherence.
Who's It For?
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Broker/Dealers |
FundPOINT 529 Data can be used to meet MSRB disclosure requirements, fulfill their obligations to offer correct breakpoints to customers, and perform trade monitoring and verification.
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Financial Advisors |
FundPOINT 529 Data helps advisors provide accurate information to investors regarding sales loads, fee calculations, and overall 529 plan suitability.
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Program & Investment Managers |
Operations staff at these firms can use FundPOINT 529 Data for trade edits, transaction processing, and supervisory filters.
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Service Providers |
Intermediaries, recordkeepers, and trust organizations need accurate plan information to help their clients perform 529 investment trading, audit transactions, correctly process trades, and calculate fees and commissions. |
Coverage
FundPOINT 529 Data supports all types of 529 college savings plans - over 110 state plans with more than 4,500 investment options. Information on underlying mutual fund investment instruments is also provided. Comprehensive 529 data categories encompass 56 individual data points:
| FundPOINT 529 Data Categories |
Data Points |
| General Plan Information |
15 |
State Information
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4 |
Sales Loads
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5 |
| Contributions and Minimums |
5 |
| Fees |
7 |
| Investment Options |
8 |
Plan Returns
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5 |
| Conversion |
2 |
| Portfolio Information |
5 |
| TOTAL |
56 |
Key Features
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Operational Efficiency |
- Depth of Data - The industry's most extensive data coverage for 529 plan general data, fees and expenses, tax benefits, and investment options.
- Painless Processing - FundPOINT 529 Data reduces the use of internal resources spent gathering 529 information, and makes multi-layered information easy to process for your firm.
- Increase Overall Data Coverage - FundPOINT 529 Data can be used as a standalone package or in combination with mutual fund data to ensure regulatory consistency.
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Compliance Management |
- Updated Daily With 100% Fund Coverage - Data is collected daily across all 529 savings plans and issuers, representing more than 110 state plans and 4,500 investment options.
- Ensure Appropriate Trading - FundPOINT 529 Data provides the information necessary to ensure proper transactions, including fees and expenses, contribution minimums, state tax rules, and investment portfolio options.
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Deployment and Support |
- Easy and Efficient Implementation - Our implementation process has been market-tested with multiple clients for a full range of NewRiver data products to ensure well-organized and economical delivery.
- Quality Customer Service - After implementation, NewRiver's Customer Support and Customer Care programs provide technical support and assistance to ensure ongoing, responsive customer service.
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