Auditing custodial accounts

• US 9,305,315 B2
• Filed: 06/27/2009
• Issued: 04/05/2016
• Est. Priority Date: 06/27/2009
• Status: Active Grant

• Current Assignee: Christopher R. Petruzzi
• Original Assignee: Christopher R. Petruzzi
• Inventors: Petruzzi, Christopher R.
• Primary Examiner(s): Corrielus, Jean M
• Application Number:
  US12/493,188
• Publication Number:
  US 20130007022A1
• Time in Patent Office: 2,474 Days
• Field of Search: 705/44, 705/14.4, 705/35, 705/39, 705/37, 705/30, 707/752
• US Class Current: 1/1
• CPC Class Codes: G06F 16/245 Query processing
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 30/0241 Advertisements
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

According to one embodiment of the present invention, a system for auditing custodian accounts is provided. The system includes a database system receiving customer and custodian information. A sorting processor performs a sort operation on the received customer and custodian information. A customer and custodian matching processor identifies matches between the sorted customer and custodian information. An interface unit outputs information relating to the existence of matches and non-matches between the customer and custodian information.

Claims

1. A system comprising:

an auditing database system that is at least partially implemented in hardware including an auditing database system website receiving customer information directly from a customer with assets managed by a custodian, the customer information identifying at least one custodian and identifying assets managed by the custodian, wherein the customer self-reports an existence of accounts and assets managed by the custodian to the auditing database system;

a database system that is at least partially implemented in hardware receiving said customer information from said auditing database system website, said database system also receiving custodian information from a custodian relating to the customer and the customer'"'"'s assets;

sorting processor that is at least partially implemented in hardware performing a sort operation on the received customer and custodian information;

customer and custodian matching processor that is at least partially implemented in hardware for identifying matches between the sorted customer and custodian information;

said auditing database system having therein an auditor interface for outputting information to an auditor relating to the existence of matches and non-matches between said customer and custodian information, wherein the custodian information received by the auditor through the auditor interface is used by the auditor to perform an audit on the custodian to verify the existence of assets corresponding to the customer information;

customer/auditor interface unit for providing said customer with information from the auditor interface regarding the existence of matches and non-matches between said customer and custodian information; and

the auditing database system providing a recommended course of action and outline of the discrepancies if there are any non-matches between said customer and custodian information, wherein the recommended course of action includes communication with the auditor.

2. The system according to claim 1, wherein said database system is a relational database system.

3. The system according to claim 1, wherein said customer information includes information relating to assets owned by said customer and controlled by said custodian.

4. The system according to claim 1, wherein said customer information includes information relating to an identity of at least one custodian of said assets.

5. The system according to claim 1, wherein said custodial information includes a list of customers of said custodian.

6. The system according to claim 1, wherein said custodial information includes the assets value in customer accounts at a given point in time.

7. The system according to claim 1, wherein said custodian and customer matching processor identifies custodian account information provided directly by customers which were missing from the custodian information provided by a corresponding custodian.

8. The system according to claim 1, wherein said custodian and customer matching processor identifies differences between the information relating to the assets value in custodian accounts provided directly by customers and the information relating to the value of assets in corresponding custodian accounts provided by a corresponding custodian.

9. The system according to claim 1, further comprising a customer interface unit and a custodian interface unit for providing said customer and said custodian information to the database system.

10. A method comprising:

receiving on an auditing database system website customer information directly from a customer with assets managed by a custodian, the customer information identifying at least one custodian and identifying assets managed by the custodian, wherein the customer self-reports an existence of accounts and assets managed by the custodian to the auditing database system;

receiving on the auditing database system custodian information from a custodian relating to the customer and the customer'"'"'s assets managed by said custodian;

identifying any custodian account information provided directly by customers contained in said received customer information which was missing from said received custodian information from a corresponding custodian;

sorting said customer and said custodian information;

finding matches between said sorted customer and custodian information;

the auditing database system providing information regarding matching and non-matching customer and custodian information to an auditor having access to the auditing database system;

performing an audit of said custodian by the auditor to verify the existence of assets corresponding to the customer information;

providing said customer with information from the auditor regarding the existence of matches and non-matches between said customer and custodian information; and

provide a recommended course of action and outline of the discrepancies if there are any non-matches between said customer and custodian information, wherein the recommended course of action includes communication with the auditor.

11. The method according to claim 10, further comprising identifying discrepancies between the information relating to asset values in said received customer information and the information relating to asset values in said received custodian information from a corresponding custodian.

12. The method according to claim 10, wherein said sorting and finding matches further comprises using a relational database management system.

13. The method according to claim 12, further comprising using a Monte Carlo technique for performing said sorting and finding matches.

14. The method according to claim 10, further comprising communicating from the auditor to the customer a recommended course of action in the case of non-matching customer and custodian information.

15. The method of claim 10, wherein said performing an audit further comprises obtaining and verifying custodian asset information through an intermediary instead of directly through the custodian.

16. The method of claim 10, wherein said performing an audit further comprises investigating and reporting on non-matches by the auditor.

17. The method of claim 10, wherein said performing an audit further comprises accessing two independent sources of information comprising information from a custodian and information from the customer who owns the assets managed by the custodian, and wherein the auditor has access to information from the customer.

22. The method according to claim 10, further comprising communicating from the auditor to the customer the information regarding matching and non-matching customer and custodian information.

18. A computer program product for facilitating an audit, said computer program product comprising:

a non-transitory computer readable storage medium having computer readable program code embodied therewith, said computer readable program code comprising;

computer readable program code configured to;

receive on an auditing database system website customer information directly from a customer with assets managed by a custodian, the customer information identifying at least one custodian and identifying assets managed by the custodian, wherein the customer self-reports an existence of accounts and assets managed by the custodian to the auditing database system;

receive on the auditing database system custodian information from a custodian relating to the customer and the customer'"'"'s assets managed by said custodian;

sort said customer and said custodian information;

find matches between said sorted customer and custodian information;

provide information to an auditor of the auditing database system regarding matching and non-matching customer and custodian information, wherein an auditor performs an audit of said custodian to verify the existence of assets corresponding to the customer information;

provide said customer with information from the auditor regarding the existence of matches and non-matches between said customer and custodian information; and

provide a recommended course of action and outline of the discrepancies if there are any non-matches between said customer and custodian information, wherein the recommended course of action includes communication with the auditor.

19. The computer program product according to claim 18, wherein said customer is an investor and said custodian is a stockbroker.

20. The computer program product according to claim 18, wherein said custodian is an insurance company.

21. The computer program product according to claim 18, wherein said computer usable program code is further configured to communicate from the auditor to the customer the information regarding matching and non-matching customer and custodian information.