FAS Conference September 10-13, 2015

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Three key notable trends

Mutualization of technology and operations • Increased regulatory pressure is negatively

impacting profitability

• Leading firms are sharing processing functions with other firms to manage expenses and reduce risk

• Technology and operations play an essential role in helping firms improve the bottom line

Digital communications • E-delivery of investor communications and

internet platforms allow firms to lower costs, build stronger relationships, and gather customer intelligence

Data and analytics • Insights from customer and market data are

driving new sources of revenue growth

Evolving Financial Services Industry Creates New Opportunities

Broadridge is at the forefront of identifying and leveraging change in the financial services industry. Clients rely on Broadridge’s insight and solutions to help them run their operations at optimal levels of scale and efficiency.

Industry Initiatives

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Industry and Regulatory Initiatives

• V25.2

• V26 FundSERV

• Aton Changes

• RESP

• GICs

• Trade Novation Changes

• T+2

CDS

• Form & output changes

• Registered Plan Changes –RRIF/RLIF min, Reg. Adj. +

• Common Reporting Standards – GATCA

• T1135

CRA/MRQ

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Industry and Regulatory Initiatives

• Market Value

• Book Cost

• Monthly Statements

• Confirm Changes

• Performance

• Fees/Charges

IIROC-CRM2

• Stage 3: May 30, 2016 IIROC-POS

• Re-Engineering Continues

• T+2

DTC

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Industry and Regulatory Initiatives

• Discontinuation of ACES RESP Grant

• BCTESG RESP Grant

• QESI ITS Standard Changes

Grant Programs

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Besides the industry initiatives:

Hardware upgrades & resiliency

Operating software upgrades

Security audits

Process audits

Redesign applications

Create new and expand existing solutions

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Client Relationship Model (CRM) Phase 2

• CRM2 - New Dealer Member Rules 29, 200 and 3500 (in support of National Policy 31-103)

HIGH-LEVEL REQUIREMENTS DEADLINE

Pre-charge disclosure Disclosure for debt securities on confirms

July 15, 2014

Market valuation of securities Client Name processing and reporting Book cost/original cost

December 31, 2015

‒ Confirm Changes ‒ Annual charges and compensation reporting ‒ Performance reporting

July 15, 2016

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Fund Facts Regulatory Update

Stage 1 – production, filing, posting of Fund Facts to a fund company website, and delivery of Fund Facts under exemptive relief – since 2012

Stage 2 – delivery of Fund Facts to satisfy current prospectus delivery requirements – since June 13, 2014

– Stage 3 – POS delivery of Fund Facts for mutual funds and summary documents for other types of publicly offered investment funds – Effective May 30, 2016

Stage 1

Complete

Stage 2

Complete

Stage 3: POS

• Mutual Funds Facts phased implementation

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Exchange Traded Fund Regulation Changes

CSA Notice and Request for Comment – Mandating a Summary Disclosure Document for Exchange-Traded Mutual Funds and Its Delivery

Proposed Amendments to NI 41-101 General Prospectus Requirements and to Companion Policy 41-101CP to NI 41-101 General Prospectus Requirements and Related Consequential

Amendments

• Requirement to send Exchange Traded Fund (ETF) Facts documents with securities confirm with in two days similar to Mutual Fund Fund Fact post sale disclosure

• Request for comment due September 16, 2015

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New ETF Disclosure timelines

Publication Date

(early 2016)

In-Force Date

(+3 months)

ETF Facts Filing Requirements (+9 months)

ETF Facts Filing Deadline (+23

months)

ETF Facts Delivery

Requirements (+24 months)

• (as outlined in the CSA Notice and Request for Comment – June 2015)

Final publication of proposed Amendments

Proposed Amendments come into force

ETF Facts must be filed with any preliminary and pro forma prospectus filed on or after this date

All ETFs must have filed the ETF Facts by this date

Dealer must deliver ETF Facts to purchasers in connection with purchase made on or after this date

Innovative Solutions

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Enhancements – Dataphile Advisor Web desktop

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The New ProxyVote™ Experience – "First Visit" Screen When securityholders visit the new site for the first time, they will see an introductory screen that announces the re-launch.

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New Proxyvote.com Portal

• The new voting portal presents all of the information securityholders need to cast their votes in a single, clearly organized page.

– New branding options ensures your clients retain brand awareness with your firm when voting

– Issuer branding is included for quick identification

– Ease of use, simplified process

– Easily review securityholder material

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Inlet is a Robust Digital Network

select the channel they want to use

Consumers

Inlet enables you to communicate with consumers through the digital channels they select

Digital Mailboxes

Pony Express

Productivity Apps Cloud Solutions Online Banking

Communications: Statements, Bills, Confirms, Regulatory, Notices, Letters, …

Investment Banking Telco & Cable

Healthcare Insurance Other

Industries

are connected to the network

Channels

• Distributes communications • Manages preferences • Digitizes the content • Analyzes data

Inlet

connect to the network once

Content Providers

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Inlet Cloud Suite Partners

“Anytime, anywhere” access is driving consumers to aggressively adopt cloud storage services

User base 100 million+ 200 million+ Not released

Mobile Downloads 51 mil Android

35 mil iOS 180 mil Android

12.6 mil iOS 110 mil Android

23 mil iOS

Description

Productivity app with UI support for viewing and annotating PDFs

and other media

File-based, format-agnostic cloud storage

Cloud-based file and document

management with sharing

Evernote Dropbox Amazon

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Transforming Communications

Original Document Notification To the channel and device

the investor chooses

Transformed

Communications Are now interactive and digital

Converting communications from static PDF’s to interactive two-way communications improves the experience for the consumer while providing significant value to the brand

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• Smart Statements – Innovative Messaging

– New offering – partnership with Doxim

– Innovative monthly, quarterly, annual statements with client defined messaging (client controlled and executed)

– CRM2 applicability (statements and reporting)

– Out-sourced or in-sourced models

Smart Statements

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About Our Advisor Solutions

delivers business critical technology products and marketing services to Broker/Dealer home offices and their advisors that:

• Smart Advisor: meet the requirements for Point of Sale Phase 3 (Fund Facts),future ETF Facts, and the ability to send marketing material to generate new revenue

• Build Advisor brand: websites, on-line name placement and local business listings

• Share knowledge: educational content, direct mail and seminar marketing

• Optimize practice management: data aggregation, reporting, newsletters, e-cards

• Broadridge Advisor Solutions (BAS) supports:

– 250+ enterprises comprising 80,000+ advisors and agents

– Acquisition of Direxxis – March 2015 – adds a data driven, distributed marketing solution that supports in excess of 50,000 users today

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Advisor Websites

Advisor Website Platform allows for the following functionality:

• Corporate program manager capability

– Upload corporate content

– Set default content

– Manage overall program

– Comprehensive web analytics

– Full compliance oversight

• Full inline website editor

• Drag and drop capability

• Responsive designs library

• Theme selector

• Selection of available default corporate content

• Data feed capability of all FA personal content

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Content: E-Cards and Digital Newsletters

Advisor Features:

Home Office Management:

• Ability to put clients on track

• Assign clients to specific target markets

• Send from a library of:

– Animated greeting cards, special events, seminar events, corporate approved content

– Advisor branded Digital Newsletters

– Choose from a selection of articles

• Track usage of piece and open rate

• Build tracks and special campaigns

• Upload company specific content

• Full report management capabilities

• Compliance oversight and management