MiFID, Suitability & Cross-Border

Regulations for investor protection, market transparency or cross-border banking

Suitability
Make consistent decisions

Suitability, MiFID and Cross-Border Banking represent a large number of rules and regulations that have to be taken into account when selling financial products and services. Our software delivers results from rule-based analysis and takes decisions.

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Ensure investor protection with rule-based technology

Banks have to meet customer expectations and must comply with regulatory requirements, such as MiFID II and AIFMD, to balance customer needs with products or investments and to protect their clients. The decisions involved can be handled by ACTICO software. Based on rules, it decides what combinations are possible for compliance with product, client and investment suitability.

Considering Regulations

In the EU, the Markets in Financial Instruments Directive (MiFID) is authoritative for suitability, while in other countries, regulations by regulatory agencies or standards of financial organizations apply, such as FINRA in the US, the Hong Kong SFC, the SEC of Thailand, or the MAS in Singapore.

Ensure suitability

Specifications ensure that products and services are tailored to each situation and the needs of that customer. This includes the identification of the persons’ risk profile and personal preferences. The risk profile the customers risk capacity into consideration in addition to their age, assets, liabilities, investment knowledge, goals and risk tolerance.



Make the decision process secure

Suitability checks influence the entire decision-making process from consultation to monitoring. ACTICO Software enable you to check products before they are offered or sold (Proposal Suitability Check), while the transaction is executed (Execution Suitability Check) and subsequently based on all active portfolio holdings as well as ongoing transactions (Suitability Monitoring).


Product & Client Suitability

Product Suitability includes analyzing the opportunities and risks of products and services. ACTICO software generates indicators for which type of investor group the products are appropriate for. On the other hand, Client Suitability focuses on the analysis of matches between assets and customer risk profiles, and between information on the risk and their disclosure.

MiFID II & Cross-Border Banking

One of the obligations arising from MiFID II is conducting a review of appropriateness, based on the client's documented knowledge and experience. This is required in order to understand certain product categories and their risks. In a cross-border transaction, local regulations must be applied first to be identified based on the scenario’s complex assessment rules.

products
Our Software for Your Suitability
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Software to secure customer's investor protection
Cross-Border Suitability
Make decisions based on digital country manuals
New regulatory requirements for investor protection pose special challenges, in particular for banks with significant volumes of international business. ACTICO's Cross-Border Suitability Solution answers the question of whether you are allowed to offer a product or service to a given client – using IT-based decision-making and in an audit-proof way.
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Rule technology to meet suitability & MiFID requirements
ACTICO Rules
Meet suitability & MiFID requirements
Customers rely on our business rules management system (BRMS), ACTICO Rules, to meet suitability and MiFID requirements. The unique graphical approach allows business professionals to implement changes to the underlying decision logic rapidly and flexibly.