10 billion securities transactions – annually and worldwide. A huge number. Often, these transactions are still booked manually with a great deal of additional effort. Increasing regulatory requirements are forcing asset managers to acquire a technical solution. PMS systems therefore simplify the fulfillment of regulatory and legal requirements. But that’s not all: In an interview, ONE PM COO Ali Madani explains the advantages of a PMS system in terms of data quality, cost and resource savings, and efficiency in business processes.
Many asset managers in Switzerland are not yet FINMA-licensed. What does this mean?
It means that in many asset management companies, large portions of the financial transactions are still laboriously recorded manually. This is a great effort, because data must be correct, especially for audits, and many regulations must be complied with. Considering that only about 2500 asset managers are currently licensed by FINMA in Switzerland, there is enormous potential in the domestic market alone. With a PMS tool like ours, which is powered by one of the best financial data consolidation software, almost 100 percent of all transactions (cash and securities) can be processed automatically and outputs of the highest quality can be delivered.
Welchen Mehrwert bringt ein Portfolio Management System für Vermögensverwalter?
A portfolio management system offers asset managers many advantages: It facilitates portfolio monitoring and enables faster decision making.
It can also increase efficiency, minimize risk and improve transparency. A good portfolio management system also provides enhanced analytics and reporting capabilities to track and evaluate portfolio performance. Last but not least, it saves human resources. So the benefits of a PMS are obvious:
Automatic review of investment strategies and policies.
Automatic portfolio consolidation and corresponding analysis for performance calculation and reporting
Efficient order management and rebalancing of portfolios for all clients using model portfolios
Are asset managers even able to meet regulatory requirements without tools?
It is unlikely that asset managers will be able to meet all regulatory requirements without tools. These are often complex and require extensive monitoring and documentation, which can be most effectively achieved with specialized tools. A PMS facilitates the daily work in many areas, as it performs manual steps automatically in an uncomplicated way:
- Compliance with regulatory requirements regarding customer information and communication
- Automatic transaction review and active notification of policy violations
- CRM Management, KYC checks, documentation of important customer information, notes, meetings
- Compliance monitoring: automatic review of set investment rules
- Review of GWG transactions
What does compliance monitoring for asset managers entail?
Compliance monitoring for asset managers includes monitoring compliance with legal and regulatory requirements as well as internal guidelines with regard to the handling of client funds and data and the avoidance of conflicts of interest.
This is to ensure that asset managers act in accordance with applicable laws and regulations, minimize risks, and adhere to investment strategies as per contract. A PMS system helps with this.
What challenges do asset managers struggle with in terms of regulatory compliance?
The ONE PM PMS system briefly explained:
Over 10 billion securities transactions are processed annually by financial services providers worldwide. securities transactions are processed by financial service providers. Although banks provide electronic data, each bank uses its own format. Consolidation or comparability of securities portfolios is only possible with great manual effort and time delay. ONE PM software enables automated and efficient processing of financial data according to the latest regulatory standards, in the highest possible quality. Regulations, data ownership, processing, comparability and monitoring are no longer an issue.
ONE PM has a solution that centrally processes and standardizes all payment and securities transactions – regardless of their origin. The data is standardized and made available to each customer on a daily basis in the desired form.
Daily consolidated view of their financial data.
Over 80% cost savings through automation.
Exponentially higher earnings potential in relation to software investment costs.