The financial sector is full of regulatory complexities, and Fund Managers are no exception. As regulations become more stringent and data requirements grow more intricate, many firms struggle to keep up with their regulatory obligations. From fragmented systems to poor inter-departmental communications, these challenges can hinder a firm’s efficiency and expose it to unnecessary risks.
Based on conversations with industry professionals, we’ve identified some of the biggest pain points that Fund Managers are likely to face in their compliance processes. In this blog, we explore how innovative solutions, like those offered by eflow, are transforming how Fund Managers approach their regulatory responsibilities - not only to meet the necessary requirements, but to do so in an efficient and robust way.
Access to contextual insights
Understanding the broader context behind compliance data is critical. However, many Fund Managers’ reporting processes do not consider the context of external factors like market events and news when analysing and investigating potentially suspicious activity. This means that signs of manipulative behaviour could be missed, or focus is drawn to the wrong areas.
eflow’s solutions bridge this gap by integrating relevant external information into its reporting functionality, creating a highly contextualised view of trading activity. Firms are then able to connect the dots between market movements, internal actions and outcomes within one centralised system. This means that they gain actionable insights that facilitate better decision making and more strategic compliance management.
Breaking down silos to improve communication
Effective regulatory compliance depends on seamless collaboration across departments. However, in many Fund Managers, compliance, risk and legal teams operate in silos, leading to operational inefficiencies and miscommunication.
By providing a centralised platform from which to coordinate regulatory investigations, eflow’s case management functionality removes this hurdle. It fosters transparency and streamlines communication across teams, providing one source of the truth. This unified approach allows firms to improve collaboration, drive greater accountability, and ultimately maintain their regulatory compliance more efficiently.
‘One true view’ of data
Regulators often require Fund Managers to consolidate data from multiple sources, which is no small feat when this data is siloed across multiple systems. Without an automated way of collating this data, this can be a difficult and time consuming task that is also prone to errors.
eflow eliminates the inefficiencies of manual processes by automating workflows such as data reconciliation and report generation. This automation not only reduces costs and removes some of the operational strain from stretched compliance teams, but also minimises the risk of errors, ensuring that regulatory reporting is accurate, timely and comprehensive.
Regulatory technology designed for Fund Managers
eflow’s solutions have been designed to address the unique regulatory needs of Fund Managers. Through automation, data enrichment, and advanced monitoring tools, eflow empowers firms to overcome their compliance challenges.
For instance, eflow’s TZTS trade surveillance platform provides a highly configurable solution to monitor trading activity, helping Fund Managers detect and mitigate market abuse risks. Its comprehensive data enrichment, streamlined process automation and tailored reporting capabilities provides firms with the ability to mitigate the risk of market abuse more efficiently than ever before.
Similarly, TZTR streamlines transaction reporting, a process that often drains resources across firms. It reduces the administrative burden on internal teams, improves the quality of data submissions, and simplifies exception handling through one holistic system.
As digital communication channels become more of a focus for regulators, eComms surveillance has become indispensable. TZEC enables Fund Managers to monitor messages across multiple channels from a centralised hub, allowing firms to uncover communications that often precede instances of market abuse.
Improving performance is likely to be central to the strategy of all Fund Managers. TZBE addresses best execution requirements, helping Fund Managers not only meet their obligations, but uncover invaluable trading insights that can be used to drive improvements to trading and operational effectiveness.
Find out how eflow could help your firm by booking a consultation with one of our experts who can talk through your regulatory challenges, and provide you with a demo.
