National Regulatory Services (NRS), part of Accuity, today announced the release of a new module for the NRS ComplianceGuardian™ technology platform. The Personal Securities Trading Module enables firms to automate the process of reviewing the personal trading activities of their access persons. This offering integrates with services provided by the NRS team of consultants to monitor and review trading activity against a firm’s Code of Ethics and provide guidance for corrective actions if necessary.
The new module automatically applies a firm’s personal securities trading policies, as outlined in its Code of Ethics (also maintained in the ComplianceGuardian system), to requested and actual personal trading activity. This module automates the approval, denial or manual preclearance process and flags actual trading activity that is non-compliant for exception processing.
“With over 75 people convicted of illegal trading activity since 2009, the SEC continues to focus on insider trading by hedge funds and investment advisers,” explains John Gebauer, Managing Director of NRS. “During examinations, regulators carefully review the supervisory and compliance programs in place to detect and prevent any inappropriate activity in this area. It is critical that firms adopt appropriate policies and procedures to achieve this goal. Unfortunately, that often means inefficient manual processes that rely on the tedious tasks of collecting personal trading data from access persons and comparing it against the firm’s Code of Ethics and restricted lists. We now provide a solution to eliminate the otherwise resource intensive approach to personal trading compliance.”
Features and benefits of the NRS PST Module, which comes fully integrated with ComplianceGuardian, include:
- Automated Trade Preclearance and Exceptions — This module automatically processes preclearance requests against Code of Ethics trading rules and prior trading activity. Each day, the actual trading data is processed and potential trading rule violations are flagged for further review and resolution.
- Automated Reporting for Annual Holdings, Quarterly Transaction and Initial Holdings — Regulations require firms to review annual holdings and quarterly transaction reports. In addition, newly designated access persons must file an initial holdings report.
- Attestations and Automated Archiving — This module assists in creating the required reports and notifying users to attest to those reports. Attestations, with transaction or holdings information, are archived and exportable to Excel.
- Create and Manage Multiple Restricted Lists Simultaneously — Based on different trading groups, firms must manage multiple Restricted Lists. These lists can vary within firms and this module allows multiple users within a firm to create different restrictions. Those restrictions can then be applied to individuals or defined groups within the firm.
- Integrated Code of Ethics Trading Rules — This Personal Securities Trading Module easily creates a Code of Ethics that integrates trading rules so that access persons not only attest to this Code, but also have their trade requests reviewed by the system based on these rules. Trading rules are created using the profile tool which can be changed any time a firm changes its rules.
- Manage Heightened Supervision Individuals Easily — Every firm abides by a set of requirements regarding individuals that challenge the firm’s trading rules. New employees may need more oversight for an initial period of time. Manually reviewing these trades regardless of whether a rule has been violated is as simple as checking a box for that person.
NRS ComplianceGuardian offers investment advisers, broker-dealers and private fund firms best-in-class compliance services, tools, education and consulting in a single online solution. This solution provides a simple, user-friendly Web interface and employs a permission-based user model that matches each firm’s supervisory structure to ensure compliance.
For more information on ComplianceGuardian’s new Personal Securities Trading Module, visit https://www.nrs-inc.com/PersonalTrading.
National Regulatory Services (NRS) is part of Accuity, the global standard for payment efficiency and compliance solutions. NRS is the US leader in compliance and registration products and services for investment advisers, broker-dealers, hedge funds, investment companies and insurance institutions. NRS has the practical expertise, proven capability and unparalleled reach to deliver integrated and effective compliance solutions to a wide range of users within the financial services industry. NRS delivers these solutions thorough three interrelated offerings – comprehensive education, best-in-class technology and expert consulting services – enabling our clients to meet their regulatory requirement and minimize risk.
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