Automated deployment of cross-border country manuals and MiFID2 rules

Bizzozero and Partners SA (BRP), indigita and ACTICO forge a partnership for the integration of cross-border country manuals into a software solution. 

Many banks are wondering how they will manage to integrate new cross-border rules and MiFID2 requirements into their organizations by 2017. At its core, the new legislation aims to improve investor protection and market transparency. Financial intermediaries will be required to make investment recommendations in compliance with product-placement, PRIIPs, and MiFID2 rules. 

Digitized country manuals for cross-border business

Banks often consult country manuals to manage cross-border regulatory risks. BRP, with headquarters in Geneva and offices in Zurich, London, Luxembourg and Singapore support institutions with some 120 country manuals.

BRP and the consulting firm Orbium founded indigita to provide all the information banks and independent financial advisors need to comply with cross-border regulations in a structured digital format. BRP SA, indigita and ACTICO cooperate to provide a fully-integrated IT solution to banks aiming to ensure their cross-border compliance. The ACTICO Cross-Border Suitability Solution can process all 120 BRP country manuals and can also integrate other third-party or legacy data.

Cross-border suitability advising now as a software solution

The jointly created Cross-Border Suitability Solution enables automated processing of country manual content for a given advisory context. The software contains digitized data from the country manuals as well as structured decision-making functions. This makes it possible to determine which services or financial products may be offered when advising international clients. The software builds on the foundation of ACTICO Business Rules Management and integrates rules that decide which country manual must be referred to in each context to generate advice in conformity with cross-border regulations and MiFID2. The parameters include: the advising situation, the country of domicile of the client, the location of the bank, the activity country and the risk profile of the client.

What benefits does the automated country manual check offer?

Banks that use PDFs and/or online consultation face a time-intensive manual effort with no clear audit trail. By integrating the country manuals into a software solution, banks leverage automated decision-making and ensure auditable results. Instead of leafing through a PDF, inquiries are processed through a graphic web interface. The results, which are based on stored cross-border rules, are available in a second. This decisively reduces response time when advising clients, a benefit that raises service quality to end-users. The Cross-Border Suitability Solution documents every decision automatically. Even handling of data considered to be in a "grey zone" is presented electronically. The decision-making process can be audited at any time. Amendments of the country manuals can be integrated immediately and implemented in business operation. Two critical benefits that underline the advantages of automating cross-border compliance are the prevention of compensation claims and reputational damage. If a customer proves losses due to miscounseling, the financial institution may be liable for financial damage. This, of course, has a negative impact not only on the financial situation of the institution but also on its reputation.

About our partners

Indigita was founded to solve cross-border compliance problems faced by banks and financial advisers doing business internationally. It combined the strengths of its parent companies, BRP SA and Orbium, experts in regulatory and IT consulting, to develop the perfect solution to meet ever-changing cross-border regulatory challenges. It is based in Geneva and Zurich

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BRP SA is the leading cross-border regulations compliance consultancy. It was founded in 2010 with the aim of assisting banks and financial institutions in managing constantly evolving regulatory constraints. Today, the team offers a unique combination of knowledge acquired working with supervisory authorities (Switzerland and England), auditing and consultancy firms, law firms and bodies within the financial sector. It is based in Geneva and Zurich

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