Continuous, Cross-Asset Investment Compliance
In Limina’s Investment Management System, post- and pre-trade compliance is a native part of front-office workflows. For example, when you rebalance whole portfolios, you can run simulated compliance checks and adjust portfolios iteratively if needed to ensure the program doesn’t breach any compliance rules. Limina supports various rule types, including advanced numerical limits, restrictions and cash ladder checks, and can even leverage custom classification data.
With Limina, you have pre and post-trade compliance software in the same solution. We consider it “continuous compliance” that runs through workflows and monitors rules as markets move and cash events in the portfolio unfold in real-time. The consolidation of pre-and post-trade reduces the number of solutions and ensures your compliance checks are consistent. There is no risk of breaches from discrepancies in data or configuration!
Effortless Portfolio Compliance – Built Into Workflows
The seamless integration of portfolio compliance into Front Office workflows includes:
- Simulate investment compliance checks within the Portfolio Modelling Software, such as when calibrating inflows into multiple portfolios to a target model
- Receive a formal pre-trade check audit trail when saving orders. These audits are later available for compliance officers to produce compliance reports
- View compliance rule status (inc. how far from a breach you are) directly from the Order Management System. You can also manage breaches and request overrides without using the compliance application
Pre- and Post-trade Compliance In One Place
Compliance teams can mitigate risks and address compliance challenges by having all assets and rules in the same solution as the Portfolio Managers and operation teams.
In many system landscapes, pre and post-trade compliance technology are different solutions. In other cases, asset classes reside in different systems.
One unified, cross-asset, pre and post-trade compliance engine helps investment managers improve governance. You avoid confusion and breaches when there is consistency between pre and post-trade checks, and all securities are in the same solution!
Having one solution for both is difficult since pre-trade involves simulations and assumptions, while post-trade involves reconciled data and monitoring financial market movements continuously. A system for pre and post-trade compliance needs to be underpinned by a 3rd generation cash and position management IBOR, capable of producing any portfolio view on the fly. With a modern IBOR, it’s not only possible to merge pre-trade and post-trade compliance software in the same solution but even blur the line between the two to what we call continuous compliance – checks that continuously run, taking orders, cash events and market movements into account intraday.
Data Quality Ensured in All Investment Compliance Monitoring
To fully trust the investment compliance software, you must know that all investment data that goes into the checks is accurate, complete and has arrived in time.
With Limina’s Investment Data Management Solution, you have a layer for configurable data quality controls. The data quality checks run automatically in the background, with a complete audit trail. The system will notify your operations team if anything unexpected happens, such as missing data from the custodian or significant market moves.
Proprietary or 3rd Party Data
You can also use parameters from the Trade Order Management System in compliance. Such data might include ESG scores, risk categories and custom classifications such as the benchmark’s country classification. Any custom data parameter is supported and connected to your market data vendor(s) or via the built-in ETL tool, and data quality control checks can automatically screen such parameters.
Sophisticated Post and Pre Trade Compliance Software
Limina is more than “just a compliance engine”. With an Investment Book of Record (IBOR) at the core, our solution can quality control the data that underpin the asset management compliance. With that said, the actual engine is itself very capable:
Fast Pre-trade Compliance
Many pre-trade compliance systems are slow, making it painful for the Front Office as they wait for checks to pass. If a rule is breached, you must correct the cause and re-run compliance. This iterative process is inefficient and frustrating at best, and at worst leads to delayed order routing and missed market opportunities.
We’ve designed Limina’s compliance engine to be lightning-fast with automated checks that run in the background, so you shouldn’t have to wait more than a few seconds or less.
Standard Rulebook Templates, incl. UCITS Rules
Your responsibilities include adhering to regulatory requirements, including interpreting rule books. We want to make it as smooth as possible for compliance teams and, to that end, have created templates of possible interpretations. These templates include many standard rule books, such as UCITS.
A Comprehensive Set of Compliance Programs & Rule Types
A system must cover as many rules as possible to ensure complete investment management compliance. Only then can you trade with the confidence that no regulatory or internal controls will be breached. Hence, Limina’s compliance supports a broad set of rule types, including restrictions, concentration limits, numerical limits aggregated and filtered on any parameter and cash ladder checks. Restriction lists can be set up as exclusions or inclusions and can be defined flexibly (based on ISINs, issuer LEIs, etc.) with commentary for information/audit purposes.
Complex Investment Compliance Rules
Limina’s IMS can help lower operational risk in many ways. One way is through the ability to cater for your business's complex compliance rules. Examples include:
- Firm-level shareholder disclosure limits per region
- Maximum option premium paid during a fiscal year
- Maximum country-level and industry-level deviation from the benchmark (with custom country classifications)
Our organisation is required to support complex compliance rules, which we understood would not be available ‘out the box’. This was a key consideration in our choice of partner, and we worked closely with Limina and our business users to design appropriate solutions, which are now used daily, helping to streamline our processes and optimally manage our risk.
Business Analyst, $11bn Manager
We started our mission in 2014 with a blank canvas and a set of principles that we believe are critical for how an Investment Management System (IMS) should be built and delivered:
We believe an IMS should enable change by connecting to any 3rd party system or service provider. If you want to launch new funds or change your operating model, an open IMS should make that faster and more cost-efficient.
Trusting the data in the system is essential for Front Office decisions and governance in operational processes. Your team shouldn’t have to spend valuable time tracking down potential issues; the system should find and flag them automatically.
SUPPORTED BY PEERS
We believe the best customer support for Asset Managers comes when the team you work with have experience in Investment Management. Dedicated team members from the industry learn your business and can assist you most effectively.
FRONT-TO-MID & CROSS-ASSET
An IMS should be cross-asset and cover workflows from start to finish without jumping between systems. This increases productivity, allows superior oversight, and enables operational controls.