Guideline monitoring challenges

Ensuring a portfolio follows the investment guidelines stated in a prospectus or specific client mandate is vital. However, keeping abreast of complex guidelines is a challenge in a fast-paced and highly regulated industry.

CONNECT WITH AN EXPERT

We understand our clients’ products – both existing and those proposed for launch – and how to determine the associated investment guidelines from all relevant sources (from internal mandates to regulatory text). Our experts document these and ensure they are coded into the relevant platforms correctly before developing the appropriate governance structure that keeps them fit for purpose.

Addressing client challenges

Completing a review of overnight alerts ahead of trading desk starting their day

False alerts creating noise for the trading team

Managing a vast set of guideline checks managed outside of the compliance engine manually or through reports

Projects such as system integration and development as per requirements

Data infrastructure analysis for assimilation and solutions for desired and precise output

Expertise in third-party market-leading tools such as Bloomberg AIM, Capstone’s Sentinel, Charles River Database (CRIMS), LDC, ThinkFolio and BlackRock’s Aladdin

Details of our guideline monitoring services

Managed service offerings

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Managed service offerings

  • End-to-end analysis of pre- and post-trade alerts and sending email communications to relevant parties

  • Performing trend analysis to reduce noise and false positives

  • Partnering with guideline coding team to implement best practices in coding and monitoring processes

  • Creating and updating SOPs for all monitoring tasks

  • Standardising monitoring approach to non-codeable guidelines (NCGs)

  • Developing a post-trade automation tool to streamline breach management offering improved analytics and suppression logics

Our skill set

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Our skill set

  • Extensive working knowledge and use of order management and compliance systems, e.g., Bloomberg AIM, Capstone’s Sentinel, Charles River Database (CRIMS), LDC, ThinkFolio and BlackRock’s Aladdin

  • Extensive knowledge of global regulations such as the Investment Company Act of 1940, ERISA, FINRA, the Securities Act of 1933, SFC, MpFA, FSA and APRA

  • Comprehensive analysis of processes and procedures to identify problem areas and find definitive solutions

  • Innovative solutions for workflow management and advance forensic metrics reporting

Technology/solutions

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Technology/solutions

  • End-to-end workflow automation solutions

  • Manual rule automation solutions

  • Trade monitoring automation tool to streamline breach management

Value proposition

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Value proposition

  • Implementing best industry practices for pre- and post-trade monitoring, rule testing and documentation

  • Quality checks to ensure alert remediation is consistent, accurate and in line with agreed coding standards and prospectus or client instructions

  • Systematic monitoring programme to demonstrate to regulators

  • Access to a strong talent pool with exposure to tools such as Bloomberg AIM, Capstone’s Sentinel and Charles River Database (CRIMS)

  • Organised breach remediation library

  • Standardised breach escalation templates

Client challenge

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Client challenge

  • Required support for its BAU activities (post-trade monitoring); key objectives were to reduce fixed costs and time taken to onboard new clients

  • Required a partner able to source personnel who could adhere to its internal culture, which was very focused on quality and efficiency

Solution and value delivered

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Solution and value delivered

  • Deployed 6 associates and 1 delivery supervisor with extensive knowledge of Sentinel

  • All resources were trained on post-trade process within a span of 8 weeks

  • Created efficiencies in the post-trade process by working with the client’s IT team to develop a one-stop-shop tool that provided the information required to conduct post-trade efficiently

  • Managed post-trade analysis and monitoring for sovereign wealth funds

  • 50-60% cost savings versus hiring consultants in onshore locations

  • Effective and efficient solution – the client did not have to spend man-hours to internally train resources on processes

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