Robotic process automation for regulatory compliance at the Front Office
Inefficient manual compliance practices: A prime example is the area of client protection obligations, where ensuring that a given product or service is a good match to a client, providing all necessary pre-trade disclosures to clients and keeping an adequate, fully auditable record of everything in a single place is usually carried out manually, inconsistently and unreliably. This takes up valuable front office time and compliance time, resulting in lost trades due to bottlenecks and in jettisoning business opportunities that cannot be adequately controlled. These inefficiencies can be measured in capacity and opportunity costs of several million pounds every year.
Our MiFID II bot automates compliance with client protection obligations under MiFID II, ranging from inducements and research unbundling controls, to ensuring that products are not offered to the wrong target market, to addressing suitability and appropriateness requirements, to generating and notifying all relevant pre-trade disclosures to clients, even recording when a client has read a notification. Everything is fully auditable, timestamped and exportable in human and machine readable formats. It’s PRIIPs and GDPR compliant too. And because all this information is recorded in a single place, it is easy to ensure that your data quality is maintained.
Manual compliance is inefficient in terms of (a) capacity cost (the time Front Office personnel spends on compliance tasks instead of selling, and the time Compliance spends dealing with repetitious regulatory queries); (b) opportunity cost (the revenue lost to bottlenecks and the business jettisoned due to the incapacity to control its compliance); (c) non-compliace cost (the cost of sanctions and defending against sanctions due to failure to comply). The cost of these inefficiencies go from several million to a few billion every year. We believe our MiFID II bot can eliminate all or most of it by automating compliance.