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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.

  • Use portfolio strategy, investment plan or a model portfolio as a source for setting up limits - you can analyze your portfolio against the minimum and maximum shares in your plan or model - a limit is OK if all positions are within min and max and Breached if a position is outside the thresholds.

  • 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 limits into 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 - 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.

  • Include underlying positions (look-trough) in the limit analysis – analyze and check the limits with a look-through approach – for example, if you have a feeder-master fund structure.

  • Follow portfolio's limit statuses - follow the limit status: "OK", "Warning" or "Breached". You can follow the status of each limit, as well as the portfolio's overall limit status: the portfolio's limit status on the different levels is set to Breached or Warning, if one of the portfolio's limits exceeds the threshold. You can also check the limits in the aggregated view to see the limit status of many portfolios at once. You can search your portfolios based on their limit status. You can also export limit analysis result as a report.

  • 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.

  • Monitor portfolio limits - you can receive email notifications when the portfolio limits go over the thresholds.

  • 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.