Having a data migration checklist is one of the best ways to mitigate major risk and unwanted problems when transferring data from one system to another.
For wealth and asset managers, migrating data is a huge undertaking with little to no room for error.
Delays and errors come with huge costs, including wasted time and money, lost productivity, and potentially dissatisfied clients looking at competitor investment firms.
Meanwhile, internal stakeholders expect everything to run without incident, pressuring their IT and operations teams to get migration right.
But honestly, it’s not everyday that firms are moving large volumes of data — often in complex, unstructured, and difficult to integrate formats, as well as data spanning several years even decades — from one location to another.
Even the most experienced and senior of technical resources can run into trouble.
And is it no wonder that 83% of data migration projects fail or exceed budgets and timelines?
With so much to do and keep track of, a data migration checklist is a must.
One of the best cures is prevention, and the prep work before migration sets the foundation.
Just as studies have shown medical checklists (as one example) have improved quality of patient care, migration checklists will improve the quality of data care.
Before touching a single dataset, document why you’re migrating and what needs to move.
Is the goal to move to a newer and more robust portfolio accounting system, consolidate data from multiple platforms, or improve integration with a new CRM?
Define which systems (e.g., portfolio management, trade order management, compliance tools) and data types (client records, transactional history, tax lots) are in scope.
Avoid vague goals like “improve efficiency”—tie objectives to measurable outcomes, such as improve client reporting and turnaround times by x amount faster.
Get buy-in from executives, IT, operations, compliance, and front-office teams early.
Migration impacts workflows across departments—portfolio managers need real-time data access, while compliance teams require audit trails.
Hold workshops to map pain points and ensure everyone understands timelines, risks, and their roles.
Misalignment here can lead to costly rework mid-migration.
Legacy systems (think outdated portfolio accounting platforms or Excel-based workflows) often house duplicate, incomplete, or inconsistently formatted data.
Conduct a field-level audit to flag gaps (e.g., missing cost basis data) or inconsistencies (e.g., currency formats mismatches).
Cleanse *before* migration—fixing errors post-transfer is much, much costlier.
Investment firms operate in a heavily regulated environment.Ensure data migration adheres to GDPR, SEC, MiFID II, or other relevant regulations.
Encrypt sensitive client data during transfer, maintain audit trails, and validate that migrated data retains required retention periods.For example, migrating client KYC (Know Your Client) records must preserve consent flags and documentation chains.
Consult legal and compliance teams to avoid post-migration regulatory penalties.
Create a robust Extract, Transform, Load (ETL) plan to map how data moves from source systems (e.g., legacy portfolio accounting software) to the target platform.
Identify extraction methods (APIs, CSV exports), define transformation rules (standardizing date formats, aggregating fragmented client records), and validate loading protocols.
For wealth and asset managers, this includes handling complex security pricing data, transaction histories, and client portfolio allocations.
Use specialized ETL tools or custom scripts to manage legacy system quirks—like converting fixed-width files from old OMS platforms into structured databases.
Not all data pipelines are created equal.
For complex migrations involving multi-currency portfolio accounting systems or real-time trading data, evaluate tools that handle high-volume, time-sensitive transfers.
Partner with specialists like Empaxis, who understand buy-side challenges, including migrating years of investment data and transaction history, in a variety of formats, from older and outdated systems to newer, cutting-edge technology platforms.
Run mock migrations using subsets of data (e.g., one fund’s equity holdings) to test compatibility with the new system.
Validate data integrity by comparing source and target outputs. Always have a rollback plan if critical failures occur—like corrupted performance attribution data.
Test scenarios should mimic real-world stress: peak trading volumes, end-of-day reconciliations, etc.
Even with meticulous planning, unexpected issues—like system crashes, data corruption, or vendor outages—can arise.
Develop a contingency plan with fallback protocols, such as reverting to legacy systems temporarily or activating backup data pipelines.
Assign a dedicated response team to manage crises and establish clear communication channels to keep stakeholders informed.
For example, if a portfolio accounting system fails during migration, ensure traders can access pre-migration snapshots to avoid operational paralysis.
Give your custodians, market data providers, and SaaS vendors (e.g., Bloomberg, Charles River) ample notice about migration timelines.
Ensure new systems are whitelisted for data feeds and API integrations.Review contracts with legacy providers to avoid penalties for early termination or data extraction fees.
Migrate data in batches (e.g., by asset class, client segment, or geographic region) to minimize disruption.
Start with less critical data, like historical client correspondence, before moving live trading data.
This phased approach lets teams troubleshoot issues without halting entire operations.
Assign a team to track metrics like data transfer speeds, error rates, and system latency during migration.
Use dashboards to flag anomalies—for example, if a PMS system rejects 10% of migrated trades due to incorrect settlement dates.Pause and resolve issues immediately to prevent snowballing delays.
After migration, reconcile every data point between old and new systems.
For portfolio accounting platforms, validate NAV calculations, position balances, and performance metrics.
Run both systems in parallel for a defined period (e.g., one reporting cycle) to ensure accuracy before sunsetting legacy systems, if that is the case.
Even the smoothest migration fails if users can’t navigate the new system.
Train portfolio managers, operations teams, and client service staff on updated workflows.
Update runbooks, compliance manuals, and disaster recovery plans to reflect the new environment.
Data migration extends beyond a technical exercise; it’s a strategic move to future-proof your firm.
By following this checklist, you’ll minimize disruptions and delays to all of the important activities that must get done efficiently and in a timely manner.
For investment firms planning to migrate but lack the in house experience and confidence, partnering with experts like Empaxis ensures such pitfalls are avoided, letting you migrate with ease and ultimately focus on what matters most: growing assets and keeping clients happy.
The migration process can certainly be challenging, but the very first step starts with the checklist.
Planning to migrate data at your firm? Empaxis partners with buy-side investment firms in their data migration processes, taking ownership of the projects and carrying out the task from start to finish, ensuring a successful completion. Schedule a consultation.
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