IBM has introduced a new shared-cost processing model for the mutual fund industry that it says will reduce costs as well as comply with new regulatory requirements. National Bank Correspondent Network is the first company to take advantage of the new processing service which uses IBM’s “Mutual Fund Investment Planner Solution.”

MIPS is based on IBM’s real-time processing service for the securities industry, the On-line Securities Service, offered by IBM Securities Industry Services. OSS provides order processing and accounting, and interfaces to the major markets across North America, and to executing brokers worldwide. The new, real-time MIPS service will provide members of the Mutual Fund Dealers Association of Canada with a full service, shared-cost solution for their technology needs that will comply with the new industry regulations.

IBM says MIPS provides real-time, straight-through processing, which eliminates errors that can be caused by re-keying or transferring data between systems. Information is entered only once into the system and is fully edited against extensive real-time credit and compliance data before processing. MIPS also includes links to FundSERV for mutual fund transactions, CANNEX for GIC processing, APEX for automated payments and the CDS Account Transfer System for automated transfers between financial institutions.

MIPS supports multiple delivery channels, allowing access by investment advisors and clients any time using the Internet, personal digital assistants and telephones.