The client offers fully automated all-in-one compliance platform for the global investments industry. They serve financial services providers with automated compliance solutions that enable regulatory protection, reduced risks, and brings down the operating costs. They aim to deliver thorough, unparalleled expertise in risk and compliance experiences to their customers.
Embarked on a mission to achieve an agile, flexible, and responsive system to effectively track employees’ trading activities
Regulatory agencies such as SEC and FINRA have set clear mandates for financial institutions to make sure a culture of compliance for trading activities prevails throughout the organizations. As an extension to that, financial institutions are implementing a rigorous approach to monitoring and surveillance of trading activities performed by employees.
The client evaluated their compliance preparedness of their legacy system and realized that they needed a solution that could simplify, expedite, and automate employee pre-trade clearance and post-trade surveillance. Based on that, the client wanted the solution to deliver easy-to-comprehend reports and generate relevant alerts that could enable smart investigation and analysis.
Compliance personnel identified manual trade compliance processing as a key challenge that hindered their continuous initiatives towards staying compliant. They had to manually produce reports required to be submitted to the regulatory agencies at the end of each certification cycle for audit. The process was time-consuming, and users heavily relied on manual processing to track, approve, and deny trade requests, or track violations and run cases.
Mission accomplished: An automated solution that expedites the process to achieve 360-degree view of financial crime and non-compliance
As the client’s technology advisor, Persistent delivered the fully integrated solution which is now a robust, automated, and easy-to-use employee trade compliance management system with high scalability and intuitive user interface.
It provides a complete end-to-end financial compliance management system that drives a holistic data processing model and highly intuitive dashboard and reporting functionality.
The system is responsive to industry regulatory changes and has been successfully helping Investment advisors, brokers, and financial institutions ensure their employees’ investment decisions are compliant with SEC and FINRA regulations even before they make a trade.
The solution allows financial firms to take a leap away from manual trading compliance processes. With configurable UI and pre-trade submission forms, firms can easily capture the trade request information to accurately review requests. The digitally submitted requests are processed through an automated rule-engine that runs all guidelines specific to employee and the trade request. Based on the guidelines, the request gets automatically approved or denied or submitted to a compliance officer for further review. The selected compliance personnel are notified via email about the pending pre-trade requests submitted by employees. Based on the set guidelines, the compliance personnel can approve, impend, or deny a trade request.
In case of post-trade surveillance, the system scans the submitted trade information, processes the data, detects, and reports violations. The violation detected can either be resolved by a compliance personnel or a case can be initiated where trade details are discussed with the violator and a requisite action is taken. All this while, complete case related communication can be tracked on the platform, hence, the solution is helping the client and their patrons successfully meet challenges of effective and efficient investigations for financial crimes and non-compliance through single, enterprise-wide case management platform.
Hence, the system provides an end-to-end solution that leverages a robust data processing model with comprehensive dashboard and reporting capabilities. The dynamic dashboard delivers single, transparent, and holistic visibility of all compliance controls, processes, and trading activities performed by employees, violations, and other compliance related activities across the enterprise.
Solution highlights
- Customized employee trade tracking for each employee
- Configurable workflows
- Master view of compliance tasks and cases for the compliance officer
- Automated pre-trade clearance
- Smart post-trade surveillance
- Unusual trading patterns alerting
- Restricted lists
- Automated trading account statement tracking
- Dynamic case management
- Efficient reporting
