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Compliance - Investment Restrictions


With FA’s Compliance - Investment Restrictions you can integrate investment limits together with pre- and post-trade compliance seamlessly into your workflows.


Define investment limits

  • Analyze limits both pre-trade and post-trade - you can analyze your portfolios' limits both "pre-trade" and "post-trade". Pre-trade limit analysis is based on analysing your current investments plus the effect of outstanding trade orders, or based on the investment plan you have defined for the portfolio. Post-trade limit analysis is based on analysing your current investments.

  • Define limits based on a snapshot analysis of your portfolio or values in custom fields - you can define your limits with values available from analyzing your portfolio, enabling the system to analyze limits based on the data at hand. You can define limits based on different values, such as market value, amount, exposure, paid in capital, distributions, or commitment, include only certain kinds of positions through grouping and filtering, and only include top or bottom investments through sorting and limiting. Your limits can be based on an individual position ("individual stock") or group of positions ("all stocks"), or a sum ("stocks and bonds combined"). In addition, you can define limits based on values you have stored in your custom fields, allowing you to set limits based on more customized criteria.

  • Define warning and breach thresholds - define minimum and maximum warning and breach thresholds, indicating what kind of values should induce a "warning" and what kind of values should be considered as "breached".

  • Group related limitsinto limit groups - you can group related limits into limit groups, allowing you to manage and analyze limits as a group. For example, you can separately group "investment restrictions", "asset allocation limits" and "UCITS limits".

Analyze, check and monitor limits on your portfolios

  • Link relevant limits to your portfolio - link limits to your portfolios to monitor the portfolio against its limits. Each portfolio can follow a different set of limits.

  • Analyze different limits pre-trade, post-trade, and based on investment plan - you can analyze the limits linked to your portfolios on different levels: pre-trade, post-trade and based on the investment plan. You can analyze all levels at the same time, each level separately, or only a certain group of limits on a specific level. You can analyze limits for a portfolio, for an open trade order, or mass-analyze multiple portfolios' limits at once.

  • Follow portfolio's limit statuses - limit analysis results in each limit getting a status "OK", "Warning" or "Breached". In addition to following the status of each limit, you can follow the portfolio's overall limit status: portfolio's limit status on the different levels is set to Breached or Warning, if even one of the portfolio's limits exceeds the defined threshold. In addition, you can search your portfolios based on their limit status.

  • Drill into the limit analysis to reveal the causes of warnings and breaches- after you have analyzed your limits, each limit analysis is broken down to individual position level with relevant details. This allows you to track what caused the limit to induce a warning or a breach, and how far over the threshold your limit is.

  • Track the history of analyzed limits - you can see past limit statuses, limit analysis results and and time of analysis through audit trail.

  • Analyze and check pre-trade limits before accepting open trade orders - you can check the open trade orders you are about to create against the portfolio's pre-trade limits in rebalancing in Model Portfolio Management module, or analyze the limits when manually creating a new trade order through Trade Order Management module.

  • Block portfolio from investing in specific types of instruments - you can define "never have" rules on your portfolios, allowing you to prevent trades in certain types of instruments.

Track portfolio drift

  • Track portfolio drift through drift tracker - you can set a target allocation for your portfolios in the form of strategy, investment plan or model portfolio (broken down to security or asset types level), set maximum bounds for drift and see which positions have drifted from your target and how much.

  • Monitor drift within your portfolios - automatically flag drifted portfolios, and get warning emails if the system detects any drifts. You can choose to automatically record tasks from the warnings, and follow the warning tasks through the Task Management module.