Ensuring Real-Time Investment Suitability

Challenge

The financial institutions were only given a short time period to implement controls and procedures. Thus, UBS Hong Kong was looking for a reliable technology partner, who could help them become compliant within an extremely tight timeline.

Objectives

• Compliance with regulatory and institution-specific requirements
• Seamless integration with the existing infrastructure
• Ease adaptability of underlying logic by business users

Solution

UBS Hong Kong decided to use ACTICO Rules for this initiative. Primary reason for choosing this software was its capability to support agile and flexible development, as demanded by business functions. With close collaboration between UBS and ACTICO, an integrated transaction control check methodology was implemented for existing order management systems within a mere six months. The solution runs several checks before a transaction is executed, including whether:

• the client is duly informed during the investment process,
• the client has the required knowledge and experience,
• the investment products are aligned with the client’s risk preferences and
• the client is vulnerable (determined by age).

Impact

After the ACTICO team handed over the solution, the UBS team has been successful in taking over the rule models and adding more checks on their own. The solution has been performing consistently for seven years and has been delivering expected results.