End-to-End Investment compliance expertise
Investment Compliance
Strata delivers transformational, end-to-end Aladdin enterprise implementation services with investment compliance at the core. Our practitioners are recognised leaders in investment compliance, providing clients with deep expertise across the full compliance lifecycle, from operating model design and compliance data modelling, to rule coding, rule testing, and comprehensive health checks and audits.
Investment Compliance Introduction
Our unique approach to investment compliance brings you the following benefits:
- Provides complete transparency and understanding of the OMS Compliance Data Model
- Avoids long winded question loops between OMS provider and the client, simplifying the code creation
- Allows clients to go-live with a clean set of accurately functioning rules, cutting out unnecessary noise caused by bad coding
Adding Value to Your Business
Systems Implementation
- Project Methodology and planning
- Provision of Rule Coding and Testing resources
- Compliance Asset – Hierarchy design and set-up based on source data
- Rule coding and formulation of Rule – Coding Standards
- Rule Testing and Quality Assurance
Business as Usual / Managed Service
- Provision of coding and monitoring resource to support business-as-usual investment compliance functions (including Rule Coding, Rule Testing, Pre-trade violations investigations and overnight violation investigations).
Systems and Quality Audits
- Conducting audits of investment compliance system rules against legal documentation
- Auditing regulatory rule coding functionality against the source law
- Auditing pre and post-trade compliance violation management process, compliance violation history, operating model design and compliance breach resolution process
Operating Model and Process Design
- Providing assistance to investment compliance operating model design
- Helping to define the roles and responsibilities of different departments in the investment compliance process
- Documenting Operating Model Design and Process map
How We Work
Quality Improvement
Data Model Build / Macros
- Bottom up build of the Aladdin Compliance Data Model and macros, resulting in an accurate, structured compliance data model for the client.
Rule Coding
- Coding rules based on the agreed client data model and macros to increase the quality and accuracy of rule coding
- Coding rules based on similar categorisation and agreed rule coding standards to achieve standardisation
Rule Testing
- Pre-agreed rule test scenarios and thorough documentation of rule test scenarios.
Efficiency and Delivery model speed improvements
Data Model / Build Macros
- Pre agreed data model and macros resulting in a reduction of rule change requirements later on in the process
Rule Coding
- Standardisation of rule coding through agreed data model resulting in higher similarity between rules increasing coding speed
- Following agreed rule categories meaning that the same or similar rules are coded simultaneously to increase coding speed and efficiency
Rule Testing
- Data model / macro built and rule coding standards result in high degree of rule similarity, which consequently means large numbers of rules can be tested at once with limited numbers of test scenarios
The Investment Compliance Health Check
The Role of Investment Compliance Functions
The Investment Compliance Function, which is also commonly referred to as Investment Guideline Monitoring, Portfolio Compliance or Mandate Monitoring, is arguably one of the most important Risk Management functions for an Asset Management firm.
Providing an Asset Management firm with the ability to monitor and control portfolio assets versus regulatory and legal restriction on a real-time basis against trading activity. Given the large size of AUMs of many asset managers and correspondingly high monetary value of individual trades, consequently the importance of investment compliance systems and functions in controlling breaches of regulations and legal requirements on a pre-trade basis is a fundamentally important risk mitigation activity of an asset manager.
Can you answer the following confidently?
- Are your investment compliance rules coded accurately to prevent compliance breaches from occurring?
- Is your investment compliance function structured to operate efficiently to identify and report on investment compliance breaches in a timely manner with the minimum amount of resources overhead?
- Have investment compliance rules been checked against robust compliance rule coding standards to ensure they consume the security master data accurately to produce correct results?
Phase and Process Components to be Health Checked
Guideline Adoption
- Review of Guidelines and Feasibility prior to an IMA being signed with a client.
- Receipt of Guidelines from Client Services and/or Legal Department. Communication with Client Services, Legal Department and/or Portfolio management regarding guideline interpretation.
- Extraction of Rules from Legal Documents.
- Adding rules into the compliance rules database/system with mapping to the relevant client portfolio.
Rule Coding
- Coding compliance rules into the Investment Compliance system
- Managing Compliance Rules Database and Consolidation into unique rules
Rule Testing
- Testing coded compliance rules
- Managing end-to-end test lifecycle and audit
Pre-Trade Monitoring
- Pre-Trade Violation management, overrides and communication with Portfolio Management team and override reasons into the monitoring system.
Post-Trade Monitoring
- Investigating post-trade compliance violations and breaches utilising the compliance monitoring system and reporting breaches to portfolio management.
- Recording comments and explanations for compliance violations within the investment compliance monitoring system.
- Managing manual monitoring workflow, conducting manual monitoring checks and recording manual monitoring results.
LET’S GET STARTED
Get your Investment Compliance audit-ready. Let's start today.
Why Clients Trust our Team
INDUSTRY PRACTITIONERS
Our industry practitioner led delivery teams will enable you to successfully adopt Aladdin across Front, Middle and Back office. With hands on Aladdin practitioner experience from Asset Managers, Asset Owners and Asset Servicers, we design and deliver the change for your organisation.
DELIVERY CERTAINTY
We are one team, that takes responsibility for delivering outcomes for our clients across the Aladdin lifecycle. With many ex-BlackRock, our team gives you access to the gold standard in training, process definition, data integration, and Aladdin knowhow to enable your teams.
GLOBAL TEAM
We bring clients the experience of our collective involvement in all major Aladdin implementations globally, with offices across the US, EMEA and APAC regions as a result of continued client success. Rely on our team to deliver your project or augment your team.
PRODUCTS & ACCELERATORS
Our experience in solving client challenges and streamlining implementations comes to life in the products and accelerators that we have developed. Our solutions compliment your experience on Aladdin, help drive your adoption of the platform and enhance your return on investment.
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