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Pioneer InvestmentsLegal and Compliance System Assessment

Weekly Status UpdateJune 23, 2005

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Agenda

• Present Discovery Document• Review Status of Analysis Phase• Review Key Observations and Directions

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Discovery Document

• The purpose of the discovery phase is to understand the current state and gain consensus on the areas of focus for the final recommendations

• The discovery document contains the following:– Introductory Information

• Objective, scope, approach, etc.– Current state process flows– Current state technology analysis diagrams– Findings

• Issues and observations as prioritized by the business– Exhibits

• Workshop meeting notes, etc.

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Analysis Phase Activities

• Currently performing additional analysis into all the high priority findings with the goal of creating short term and long term solution recommendations

Function FindingBusiness

ImpactEffort to

Implement

1 All AreasAll areas could benefit from a document management mechanism to share, store, search, and retrieve documents. High High

2 All Areas Several areas could benefit from workflow automation to distribute documents and manage approval processes High High3 All Areas Several areas could benefit from a scheduling system to manage deliverables and due dates High High

4 Compliance MonitoringCompliance would benefit from a consolidated database for capturing issues with standardized input form, automated data feeds from CRD and more elegant reporting High High

5 Compliance Monitoring The code of ethics system, CTI Examiner is not capable of scaling, need to consider a more robust solution High High6 Compliance Monitoring Automating the process of generating compliance memos should be considered High High

7 Literature Life CycleCetara language library requires upgrading to assure supportability and the associated business processes should be evaluated to assure scalability High Med

8 Literature Life CycleA more robust system for tracking, filing and record keeping of sales materials should be considered (currently relies on an Access database) High Med

9 All Areas All areas could benefit from collaboration and document sharing High Low10 Board Materials The board materials preparation process would benefit from automation (such as eBoard Books) High Low11 Registration The functionality in CRDirect needs to be investigated to determine if it can be made to meet business needs Med High12 Compliance Monitoring The compliance group would benefit from a subadvisor certification system (currently a project on the IT list) Med Med

13 General LegalThe general legal group would benefit from a database for tracking and reporting on outside legal bills (currently on IT project list) Med Med

14 Compliance Monitoring Training could benefit from a computer based training solution. Med Low

15 General LegalThe general legal group would benefit from improvements to the contract Intake system enhancements (active project in IT) Low Med

16 Registration The Employee Access database which was the predecessor to the CRDirect system should be retired Low Low

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Key Observations and Directions

• The Legal and Compliance department functions in process stovepipes

• This has led to technology point solutions which address individual functions

• However, there are common problems that affect all process areas

– Lack of document management tools (storage, search and retrieval)– Lack of collaboration tools (document sharing)– Lack of workflow automation (tracking documents through a process)– Insufficient or unexploited reporting capabilities in current systems

• Need to take a holistic approach to a technology strategy which will allow the business to leverage shared technologies for common problems

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Document and Content Management

• Document management, workflow, and collaboration is a key area of focus

• There are numerous commercially available solutions designed to allow businesses to efficiently share documents across user communities, and store for later use

• Document management systems– An electronic system that scans, stores and retrieves documents received

or created by an organization. Document management systems commonly provide workflow and tracking, check-in, check-out, storage and retrieval of electronic documents often in the form of word processor files and the like.

• Content management systems are– A system for the creation, modification, archiving and removal of information

resources from an organized repository. It includes tools for publishing, formatting, revision control, indexing, search and retrieval, as well as customized capabilities for workflow design and for tracking of text assets (such as language library components)

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Document and Content Management

Content Management

Systems

Document (Record)

Management SystemsWeb

Presentation(Extranet for CRD Dublin, Subadvisors)

Workflow Automation

Scheduling, due alerts,

assignments functionality,

custom modified by Business

Collaboration

Personalization of presentation

based on authentication

Ability to fully integrate with

existing legacy systems, create customized data

marts

Tracking of Language

Library Components, Tasks; Search

Capabilities

Reporting