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Reduce the high number of false positives
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Review the current reporting processes and suggest improvements
CLIENT CHALLENGES
- EMEA based asset manager, with retail and institutional clients was experiencing high number of false positives and was looking to improve data quality and reducing false alerts
- Required support to re-engineer their current process in order to reduce false positives
OUR APPROACH
- Acuity forensic compliance experts created a sampling methodology for all trades executed
- Used data analytics tool Alteryx to create rules to determine if a trade would be in-competition or a non-competition trade e.g.
- Types of outliers reviewed :
- Executed with only 1 competing broker
- Did not execute with the best price, spread, or yield
- The team also created an independent analysis approach e.g.:
- Review the RFP trade audit trail to understand why the trade was not executed with another competing broker
- The team identified:
- Instances where traders did not execute with the best price
- Gaps in internal thresholds which were giving multiple false positives
Benefits
- Proactive testing on an emerging risk as defined by the regulator
- Fulfilled the criteria for internal risk vetting
- Improved process efficiency by enhancing the reviewing and reporting processes
- Ascertained, recommended, and implemented critical subsequent steps
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