WealthArc, a major player in the WealthTech industry, has recently highlighted key components of the Financial Services Act (FinSA) or FIDLEG compliance and how its platform aids companies to meet the Swiss Financial Market Supervisory Authority’s (FINMA) expectations.
The WealthTech firm underscores the significance of integrated Customer Relationship Management (CRM) capacity in its approach to FIDLEG compliance. Centralised and organised client data, which includes general information, Know Your Customer (KYC) details, risk profiles, and investment preferences, is of paramount importance to regulators. WealthArc’s CRM not only ensures the consolidation of client data, but also provides a comprehensive context for clients’ portfolios and transactions. This dual capacity assists in enhancing workflow efficiency and provides valuable insights into clients’ affairs.
WealthArc’s CRM module offers additional features such as the ability to record and store client-relevant documents, track communication with clients, document investment decision rationale, and export defined data sets, thereby demonstrating compliance with FIDLEG regulations.
In adherence to FIDLEG’s Article 4 and 5, WealthArc has integrated an intuitive flow within its CRM module to record and track client segmentation. The user-friendly process includes the ability to fill in client segment data and declarations pertaining to opting in or out. Additionally, WealthArc’s Questionnaires section aids in running assessments for client risk, suitability, and appropriateness, further ensuring compliance with FIDLEG regulations.
Risk assessment is another critical aspect of FIDLEG compliance. WealthArc’s solution allows for tracking and monitoring of risk at the instrument level. With the client’s risk profile on hand, risk scoring can be declared per asset class or directly inputted at the instrument level.
WealthArc also provides features to create and monitor guidelines and alerts for guideline breaches. The guidelines can be assigned at the portfolio level or grouped as strategies for multiple portfolios. In addition to this, the platform allows users to add notes to guideline results and either approve or dismiss breaches.
The trading module in WealthArc is integral to FIDLEG compliance. It tracks outgoing trades and reviews potential guideline breaches. WealthArc provides additional transparency and reporting layers by maintaining a full audit trail of all order-related activities.
WealthArc also emphasises the importance of Best Execution in FIDLEG compliance. For users utilising FIX trading, WealthArc’s Custodian connections have embedded Smart Order Routing (SOR), scanning markets for the best execution locations considering price and liquidity.
By aligning its technology with FIDLEG regulations, WealthArc proves itself an essential tool for WealthTech firms seeking compliance with FINMA expectations.
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