Blue Express Moves State Governments Toward Paper-Less Compliance

Open Source Code is Key to Electronic

Filing for Mutual Fund `Blue Sky' Documents

Sep 16, 2002, 01:00 ET from PFPC

    BOSTON, Sept. 16 /PRNewswire/ -- Automated Business Development Corp.
 (ABD), the leading provider of compliance services and solutions for the
 mutual fund industry, announced today it will help state governments
 streamline their oversight of mutual fund sales by providing free access to
 BlueExpress, the first Internet-based system to enable electronic filing of
 "Blue Sky" documents. These documents are required by state securities
 registration laws designed to regulate the registration, reporting and sale of
 securities, as well as to protect fund investors from fraud.
     Eight states and the District of Columbia have already begun using
 BlueExpress, resulting in reduced paperwork, simplified accounting and faster
 realization of fee payments from mutual fund companies. The states using the
 program -- Arkansas, Colorado, Iowa, Massachusetts, Nebraska, North Dakota,
 New Jersey and Oklahoma -- have handled more than 117,000 filings
 electronically as of June 30, 2002. "Working with BlueExpress has been an
 enjoyable and rewarding experience," said Harold P. Kocher, Chief Examiner for
 the state of North Dakota. "We have found it to be a beneficial and cost-
 efficient tool that supports our agency's ongoing efforts to enhance services.
 In addition, we have been very pleased that, although questions or issues are
 infrequent, the ABD staff is admirably prompt in responding to us."
     ABD, a pioneer in the development of automated solutions for compliance
 with state Blue Sky laws, developed BlueExpress in response to demand for an
 open-standard e-filing alternative for the thousands of registration and
 renewal forms that mutual fund companies are required to submit each year in
 every state where they sell shares. As the first program to successfully
 enable online filing for mutual funds, BlueExpress is built around an open
 source code. That means anyone filing forms electronically -- not just ABD --
 can use the BlueExpress system.
     "As state governments search for ways to promote efficiency, BlueExpress
 can help cut costs while improving the accuracy and timeliness of securities
 filings," said Peter Lemay, ABD's founder and chief executive officer. "Until
 now, attempts at establishing an electronic filing system for securities
 compliance forms relied on proprietary technology and were also expensive and
     State governments can integrate BlueExpress into their regulatory
 databases to receive Form NF and Form U-2 filings from any fund company or
 administrator. The system also receives and tracks the associated Automated
 Clearing House (ACH) payments from investment companies for registration fees.
     By offering BlueExpress software and Web hosting services free of charge,
 ABD has improved the speed and accuracy of Blue Sky filings for its own mutual
 fund clients. Through its BlueLink and ClearSky divisions, ABD provides Blue
 Sky automation and outsourcing services to investment companies that
 collectively manage more than two-thirds of all mutual fund assets.
     Along with elimination of paper filings and the resulting savings in
 processing and accounting costs, BlueExpress provides the following
      --  Consolidation of filing packages and fee payments
      --  Easy export to state registration systems
      --  Simplified account reconciliation
      --  Graduated move from current practices
      --  User friendly interface
     "We work with each state, one at a time, to make sure BlueExpress fits its
 technology capabilities so that each filing is transferred directly into the
 state's regulatory database with information linking it to a particular ACH
 payment," said Liz Nystedt, chief operating officer of ClearSky, the ABD
 division that provides outsourcing solutions to mutual fund companies. "The
 electronic system enables same-day filing, so the state's fee collections are
 up-to-date and the incidence of late payments is significantly reduced."
     Automated Business Development is a subsidiary of PFPC Worldwide Inc.
 Founded in 1985, ABD helps mutual fund companies navigate through the
 complexities of Blue Sky laws, with technology solutions developed and
 implemented by its BlueLink division and outsourcing through its ClearSky
 division. The combined client base of the two divisions oversees 70 percent of
 the nation's mutual fund assets.
     Providing a wide range of global fund services to the investment
 management industry, PFPC is the largest full-service mutual fund transfer
 agent and second largest provider of mutual fund accounting and administrative
 services in the United States. A member of The PNC Financial Services Group,
 Inc., PFPC is also a leading provider of subaccounting and shareholder
 services, retirement services, custody, securities lending, integrated banking
 transaction services, alternative investments services and advanced output
 solutions through print mail services. PFPC clients comprise some of the
 world's most successful financial services companies, including brokerage
 firms, pension and investment managers, insurance companies and banks. PFPC's
 affiliate, PFPC International Ltd., with offices in Dublin and County Wexford,
 Ireland and Luxembourg, has served the international funds community since
 1993. For more information, please visit
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