CASE STUDY

90% Reduction in Processing Time for Personal Account Dealing Compliance

Ensure 100% PAD compliance with automtaed pre and post-approval processes.

90% Reduction in Processing Time for Personal Account Dealing Compliance

-90%

Reduction in Processing Time

+100%

Cases Checked

01.Background

Policies regarding Personal Account Dealing aim to ensure that transactions in financial institutions executed by employees for their personal accounts are conducted in compliance with applicable laws and regulations relating to market abuse and that conflicts of interest related to transactions executed by employees for their personal account are avoided managed properly. Misconduct through personal account dealing could lead to dire consequences, such as bad publicity, reputational damage and potentially fund outflows.
Currently, in a global invesment management firm, compliance officers have to spend 6.5 hours on average on repetitive compliance checking. Each month they receive hundreds of statements from brokers, which act as proof of trade so that compliance officers can verify them against their employees' pre-approval for trading. Their job is to cross-check between pre-approvals and broker statements to make sure that their employees are performing trades in compliance.

02.Challenge

Due to limited resources, the process is burdened with a number of challenges:
- Compliance risk : Only a number of pre-approvals and statements were cross-checked because of limited human resources
- Data inefficiency: Mountains of data were wasted and under-utilised
- Operational inefficiency: Process was slow and costly due to time-consuming checking and investigation procedures

03.Solution

Our personal account dealing solution allows their employees to fill in a trading request form online and then automatically verify the requests against their internal regulations to return approval or denial decision. Our solution also allows for post-trade compliance checking, where compliance officers check the statements that their employees' brokers sent against pre-approvals to assure that the approved trades are executed accurately
By utilising our solution in pre-approval and post-approval process, our client has secured compliance with 100% cases checked and 90% reduction in processing time.

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