One of the main preoccupations for banks and financial institutions in 2018 is getting regulation ready. With so many different regulatory protocols to comply with, and tight deadlines within which to prepare, it is a considerable challenge for organisations of all sizes and resources.
With numerous regulations to manage, notably Markets in Financial Instruments Directive II (MiFiD II), Market Abuse Regulation, and others such as the Dodd-Frank Act, financial institutions have had to devote huge amounts of resources to meet these obligations.
Considering this investment as well as the intricate, lengthy work processes involved, it is only natural to simply want to reach a stage where your organisation is regulation ready.
In this brief article, we look at how proactive trade reconstruction not only helps your organisation to be regulation ready, but also the numerous value-added benefits that go much further than mere compliance.
Beyond a compliance-only point of view
Since the Global Financial Crisis 2008-09, regulations have come so thick and fast that for many financial institutions it has been difficult to be ready on time. Therefore, staying compliant has been the pressing concern. If not, regulators can punish the offending financial institutions.
There has been little room left over to consider how technology solutions designed to make the compliance process easier can also offer additional business benefits.
Trade reconstruction that includes all instances of communication is a Dodd-Frank Act requirement. For MiFiD II, demonstrating how to reconstruct a trade has numerous advantages that support fast, comprehensive compliance. These include supporting fraud investigations with on-demand, accurate data, and timely trade report deliverance.
3 reasons to integrate a proactive trade reconstruction process
Here are the three reasons why proactive rather than reactionary trade reconstruction can help your organisation flourish.
1. Maximize compliance efficiency
With proactive trade reconstruction, your compliance efforts are smoother and faster. Features include reconstructed trade exporting in seconds, immediate customer litigation resolution, and accurate, flexible investigations.
2. Cut compliance costs
Proactively reconstructing trades helps reduce compliance costs and fraud-related fines through maximising compliance efficiency and cracking down on fraud. Providing evidence to support any litigation processes alone can save massive amounts of capital.
3. Minimize risk
Proactive trade reconstruction helps stamp out fraudulent activity through preventative measures. As surveillance is present on every single trade and includes every instance and type of communication, including voice, the likelihood of fraud is lower.
In the event of fraudulent activity taking place in spite of this deterrent strategy, your team will be positioned to react efficiently and with rich, on-demand data to stop fraudulent attacks from progressing further.
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