Compliance and reporting

Problem

In recent years a considerable number of increasingly complex services and instruments addressed to large groups of investors appeared on the financial markets. In addition, a rapidly developing market environment, the emergence of new development directions and strategies put the investment companies in the face of an eternal dilemma: What is the true price of the offered investment strategy? How do we offer the customer a sufficiently attractive, yet at the same time, safe product? Concurrently, an increase of volatility on the financial markets as well as credit and settlement risk contributed to higher requirements for control of investment limits, risks and the reporting obligations to supervisory institutions.

Challenge

The answer to the need to organize and standardize services offered by entities operating on the capital markets, was the creation of institutions governing investment activities and general provisions (e.g. MiFID). In addition, investment companies formed their own internal regulations, which must be respected throughout the investment process. Compliance with all the requirements applicable to the financial market and within the organization, including the preparation of numerous reports, and maintaining the diversity of products offered at highly competitive… has become a challenge not achievable without a dedicated IT solution.

Solution

Comarch Asset Management is a greatly efficient solution tailored to the needs of the user offering an advanced tool to control the observance of the requirements and limits imposed by both the laws and regulations. The module allows the user to define a number of independent restrictions and investment limits. The tool is easy to use thanks to the possibility of bulk limits defining a group of portfolios and an interface used for the presentation of the current state of limits allowing to reach the needed information in an intuitive way.

Key feature

• Pre-trade compliance – initial checking of limits at the registration of orders and transactions
• Up-to-the-limit reduction - an automatic reduction in the amounts of registered deals to meet the allowed number
• Monitoring the utilization of limits - a dedicated graphical interface for the presentation of the degree of utilization of limits
• Approval of infringements - a mechanism of limits or restriction infringements by persons entitled to acceptance
• Closed periods control - periodic servicing of restrictions (e.g. restriction resulting from closed periods)
• Flexibility of definition - supports law and statutory limits with a wide configuration of possibilities to create custom(user) limits and restrictions, for example, arising from the management strategies
• Reporting to Financial Supervisory Authorities - the possibility of generating reports compatible with the law setting out the detailed rules for the operation of the institution, whether in the form of printed reports or electronic documents.