Fund Management

Compliance & Risk

Compliance & Risk

Compliance

Because knowing your customer is where your company’s value lies
In Fund Management, knowing your customer is not just important from a relationship viewpoint, but also from a compliance viewpoint. Regulations governing business-client relationships become increasingly stringent while clients themselves are understandably more demanding in areas like transparency and risk management. Our KYC tool stresses the importance of offering exclusive relationship management. It allows you to approach clients on a more confident footing, giving you extensive client due diligence, compliance & profiling (AML, KYC e.g. MIFID) as well as accurate and up-to-date client risk profiling.

Anti-money laundering
Prospero’s Anti-Money Laundering Management module allows users to define and maintain AML checklists depending on the fund/category/jurisdiction/location of the individual customers. Follow-up reports are automatically produced at the frequency you need them. Prospero provides the option to export data to screening systems such as Reuter’s World-Check so that nothing is left unchecked.

FATCA & CRS
The newly issued FATCA & CRS reporting standards require international organizations to comply with a new set of challenges. Prospero has developed a solution that recognizes these new standards, and allows users to identify and update a “change in circumstance” in a customer’s FATCA/CRS status.

 

Compliance activities : On top of compliance
In an industry where reputation is paramount, the importance of being proactive in compliance and avoiding breaches is essential. Prospero’s Constant Compliance includes pre- and post-trade checks, with warnings, showstoppers and specific validation processes. View all breaches and potential breaches at a glance and get a complete overview of suspicious activity and transactions, missing or expired documents and all other compliance-related activities.

 

Setups : Taking the hassle out of your compliance
Prospero’s built-in Compliance-Rules Management module takes advantage of a unique interface, where users can easily maintain up-to-date complex compliance rules and calculations, and triggers automatic compliance report generation.

 

Risk Management

Market risk management
We know that computing different risk metrics such as volatility, VaR and expected shortfall are the fundamentals of risk management. However such measures are abstract and often based on assumptions that may be difficult to understand by the average investor. Our Market Risk module helps you explain these assumptions by basing the quantitative finance calculations on concrete economic factors that clients can evaluate. The advanced models support fat-tailed distribution, historical simulation and Monte-Carlo simulations. It can also accurately compute your credit exposure and understand the risk contribution to your portfolios by financial instrument, asset class, industry sector and currency.

 

Credit risk management
Credit risk management is a process that has long been a challenge for financial institutions. Ever since the global financial crisis, regulators – in accordance with Basel III – have been demanding increased transparency of institutions, customers and their associated credit risk. As a result, many financial institutions are overhauling their approach to credit risk, but viewing this as strictly a compliance exercise is to be short-sighted. Better credit risk management also affords an opportunity to greatly improve overall performance and secure a competitive advantage.

Our Credit Risk module allows users to make sound decisions on credit risk, supporting a broad range of derivatives, options strategies and structured products. You define the collateral requirements based on a large range of sources and datatypes: demographic, personal, economic or credit-related. The Prospero solution offers a comprehensive suite of credit risk management and data analysis tools, which enable you to gain an edge on existing credit scoring methods. Using the comprehensive overview of your underlying assets, the system can calculate interest, balance collateral needs, counterparty exposure measures including current exposure, potential future exposure, peak exposure and stress exposure, manage end-to-end margin call workflows, reconcile margin call disputes and produce fully-customizable client statements.

 

Collateral risk management
Regulations, and supervisory frameworks such as BASEL III, IOSCO (International Organization of Securities Commissions), have changed the landscape of collateral management, driving an increase in collateral requirements for OTC derivatives trading and non-cleared OTC derivatives trading.

Our solution supports all of your regulatory and strategic collateral management, providing you with a complete overview of everything you need such as your collateral, market positions, transactions and margin call conditions. With Prospero, you benefit from a wide range of tools, including: exposure calculation and margin management, portfolio margining and collateral optimization.


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