SimCorp, a provider of highly specialized software and expertise for the investment industry, recently released an industry expert roundup examining the choice of IT investment management platforms for financial institutions in preparation for upcoming regulation changes. The article examines the implications of Dodd-Frank and UCITS IV, and the repercussions of these regulations for asset managers in North America and Europe.
With Dodd-Frank set to roll-out this summer, financial institutions are increasingly in pursuit of improving transparency in the markets and facilitating the flow of information through transactions. Firms must now look into how their IT systems can support the required transparency mandated by these new reforms. This slideshow highlights several criteria firms should use when evaluating technology platforms.
Click through for six criteria firms should consider when evaluating technology platforms for regulatory compliance, as identified by SimCorp.
Firms should look for a platform that can consolidate disparate data sources to obtain a true indication of risk exposure, as well as gain insight into liquidity, valuations and other important metrics.
An optimal IT system will offer a high degree of automation to minimize any manual processing error that can lead to financial loss for clients and reputation damage for the firm itself.
A quality system should provide frequent updates to ensure robust data quality for informed-decision making.
Firms should pick a solution that covers all asset classes and financial instruments to ensure that new asset classes, funds and portfolios are being processed.
The system must be able to incorporate regular changes to workflows and business processes in order for asset managers to stay on track and ahead of competition.
The platform needs to be able to scale to accommodate higher transaction volumes for new asset classes, funds and portfolios to ensure the organization’s growth potential.