A brief look at what’s on International Treasurer’s radar screen this week.
A preliminary look at what’s coming up on some of the NeuGroup Peer Group meeting agendas and also the changing regulatory environment for pension plans were two content items that came up during International Treasurer’s the editorial call this week.
Upcoming meetings. All NeuGroup peer group meetings begin with preliminary topic polling among members. Currently NeuGroup peer group leaders are prepping for upcoming meetings for T30 treasurers, Engineering & Construction Treasurers’ Peer Group (E&CTPG) and he Global Cash & Banking Group (GCBG).
Two big items for T30 are mobile banking and supply chain finance. In terms of mobile banking, the technology is gaining traction among treasurers as security protocols improve. Remote approvals, balance reporting, check scanning capabilities are today available via a variety of hand held devices, and the horizon for their continued adoption by treasurers is almost boundless. Bankers and treasurers alike agree that it is not a matter of if but when mobile banking will catch on.
Supply chain finance continues to be an issue for treasurers as the continued crisis in Europe along with global banking rules threaten to crimp lending and funding. Practitioners are looking at a variety of ways to keep the funding lines open, including asset-backed commercial paper. This route would be particularly popular for companies with less than stellar credit. ABCP programs can help provide the needed financing for companies that cannot access the term market. With billions of corporate refinancing needed over the next several years in Europe and the US (see related story here), this and other types of an alternative trade financing will be critical.
As for E&CTPG, members plan on discussing the value of using credit ratings and corporate card programs. This has been a hot topic lately mainly because P-card programs are often difficult to get right (or even off the ground). For most companies, P-Card programs can be efficiency “manna from heaven.” They are a great for automating the manual, paper-intensive process of purchase orders and cutting of checks that can bog down an organization.
Meanwhile, the Global Cash and Banking Group is set to discuss European risk, and the direct and indirect exposures therein. Also, the internationalization of RMB continues to be a focus.
Pension management. Now is the time to take a good look at your pension management plans and to make sure your company and its plan administrators are positioned to meet the new Department of Labor (DOL) rules on fee disclosures. Given the complexity of 401(k) plan fees and recent lawsuits, independent investment firms, built on foundations of transparency and trust, may be a good option to lower both your retirement plan’s costs and your fiduciary risk given the new DOL requirements.