Software firm Digiterre has launched a product aim at easing the growing regulatory burden.
Called the Communica Compliance Engine, the software aims to provide support to managers, service providers, banks and other financial services organisations in dealing with the wide range of regulatory challenges.
In particular, the system aims to help firms address the growing multi-jurisdictional compliance demands, which include Fatca (Foreign Account Tax Compliance Act), KYC (Know your Customer), Aifmd (Alternative Investment Fund Managers Directive) and Mifid II (Markets in Financial Instruments Directive).
The software has been developed with a unnamed major hedge fund, which Digiterre said plans to use the product before the year is out.
The ability to capture client or investor-related data at once that can be used across jurisdictions throughout the world and meet multiple regulatory requirements is one of the biggest challenges facing the industry, according to Digiterre, which has offices in New York and London.
The Compliance Engine is designed to overcome this obstacle.
It allows firm to specify and design their own regulatory compliance processes to capture all the required information per jurisdiction for potential and existing clients or investors.
Firms are also permitted to re-use data captured as part of one process and use it to fulfil additional related processes, thereby saving time and data input errors.
‘We wanted to develop a product that directly addresses pain points for both buy-side and sell-side organisations and which will continue to be enhanced to meet future regulatory compliance challenges,’ Digiterre chief executive Ian Murrin said.
‘One of the most important aspects was to develop this in partnership with the industry so we are confident it will meet their needs. I would like to thank all our clients and staff involved in designing, developing and producing the Communica Compliance Engine.’
With marketing activities increasingly coming onto regulators’ radars, consultants have underlined the importance of getting procedures right.
‘The idea of the audit trail really becomes quite important. Because the regulators are going to start asking questions about when did you go marketing, who did you go marketing to, how did you go marketing and where in the curve of when did you tell us or when did you notify us of your marketing activities, so when did that take place,’ KPMG Channel Islands director, advisory, Oliver Morris explained.
‘That all comes back to the cost of getting it wrong. There’s the regulatory implications, there’s the cost implications, there’s the reputational impact.’