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Features in Regulatory Compliance Systems
for Risk & Compliance
Platforms that track regulatory requirements, manage compliance workflows, and document adherence to various financial regulations such as UCITS, AIFMD, MiFID II, SEC rules, and other jurisdictional requirements.
We ask vendors to mark their product against our feature list. It is not available for all products and in some cases we have derived data from publicly available sources. The list of features follows. Vendors can add a further 10 key features of their own.
Core Compliance Monitoring
Features focused on tracking, automating, and documenting regulatory requirements and compliance obligations.
- Audit Trail Generation
- Maintains comprehensive logs of all compliance activities and policy changes.
- Automated Rule Monitoring
- Automated checks of fund operations against current regulatory rules.
- Compliance Dashboard
- Centralized dashboard summarizing current compliance status and outstanding issues.
- Custom Rule Configuration
- Allows creation and maintenance of firm-specific rules in addition to regulatory ones.
- Exception Management
- Tools for identifying, documenting, and resolving compliance exceptions.
- Post-Trade Compliance Checks
- Analyzes executed trades for post-factum regulatory compliance.
- Pre-Trade Compliance Checks
- Verifies trade compliance prior to execution.
- Real-Time Alerts
- Notifies users instantly when potential compliance breaches occur.
- Regulatory Change Updates
- System is updated with changes and interpretations of relevant regulations.
- Violation Escalation Workflow
- Automated workflows for managing responses to potential or actual compliance violations.
Data Integration & Management
Capabilities for ingesting, normalizing, and managing compliance-relevant data from multiple sources.
- API Connectivity
- Modern API support for seamless integration with other applications.
- Automated Data Reconciliation
- Cross-checks transaction and position records to spot discrepancies.
- Bulk Data Upload
- Supports batch imports for large data sets (e.g., historical records).
- Data Encryption at Rest
- Securely encrypts stored regulatory and compliance information.
- Data Encryption in Transit
- Ensures sensitive compliance data is encrypted during network transfers.
- Data Normalization
- Transforms disparate data sets into a common format for analysis.
- Data Quality Checks
- Validates incoming data for completeness and accuracy before use.
- Flexible File Import/Export
- Handles multiple file types for interoperability with legacy systems.
- Multi-Source Data Feeds
- Integrates with custodians, trading systems, market data, and third-party risk services.
- Real-Time Data Processing
- Processes incoming data in near real time for the most current insights.
Integration & Connectivity
The ability of the system to connect with internal and external systems for data sharing and operational efficiency.
- Custodian and Prime Broker Integration
- Direct data feeds from banks and prime brokers for up-to-date positions and transactions.
- Custom Integration Development Toolkit
- SDK and documentation for developing custom system connectors.
- Message Queue Connectivity
- Support for message queue protocols (e.g., Kafka, RabbitMQ) for large-scale events.
- Portfolio Management System Integration
- Seamless data import/export with PMS, OMS, or accounting platforms.
- RESTful & SOAP APIs
- Modern and legacy API protocol support.
- Regulator Portal Submission
- Direct, automated submission to regulatory portals (e.g., SEC EDGAR).
- SFTP/FTP Data Transfer
- Secure file transfer for batch data loads and reporting.
- Single Sign-On (SSO)
- Integration with enterprise SSO solutions for seamless authentication.
- Third-Party API Support
- Robust API ecosystem for integration with regtech or analytics tools.
- Webhook Support
- Real-time notifications and data pushes to other applications.
Regulatory Change Management
Tools for tracking, assessing, and adapting to changes in the regulatory environment.
- Automatic Rulebase Update
- System automatically updates compliance monitoring based on regulatory changes.
- Change Communication
- Automated alerts and updates to all users affected by policy changes.
- Change Task Assignment
- Creates and assigns tasks related to implementing regulatory changes.
- Gap Analysis Tools
- Identifies and analyzes areas where current processes may be non-compliant with new regulations.
- Impact Assessment Tools
- Maps regulatory changes to impacted policies, controls, and business lines.
- Policy Update Workflow
- Managed workflows for revising and approving compliance policies.
- Regulator Correspondence Tracking
- Stores and manages communication with regulators regarding rule changes.
- Regulatory Calendar
- Timelines for key regulatory change deadlines and milestones.
- Regulatory News Feed
- Automatically imports latest regulatory updates from trusted sources.
- Version Control
- Tracks changes to compliance manuals and regulatory documents.
Reporting & Documentation
Support for regulatory, internal, and ad hoc compliance and risk reporting requirements.
- Audit-Ready Documentation
- Organizes and formats documentation for easy retrieval during audits.
- Automated Regulatory Reporting
- Generates and files reports required by relevant authorities (e.g., SEC, ESMA, FCA).
- Custom Report Generation
- Flexible tools to create reports tailored to internal or external stakeholder needs.
- Customizable Permissions
- Access to reports and documents controlled by user roles.
- Data Export
- Exports data in a variety of industry-standard formats (e.g., CSV, XML, XBRL).
- Document Archiving
- Secure and searchable storage of compliance documents and evidence.
- Regulation-Specific Templates
- Pre-built reporting templates for key regulations (AIFMD, Form PF, MiFID II, etc).
- Scheduled Reporting
- Automated scheduling and delivery of reports.
- Self-Service Reporting
- Allows end-users to generate and customize reports without IT involvement.
- Workflow Audit Logs
- Preserves historical records of reporting activities and user access.
Risk Assessment & Management
Capabilities for identifying, quantifying, mitigating, and monitoring regulatory and operational risks in fund management.
- Automated Risk Mitigation Reminders
- Notifies responsible parties of required mitigation activities.
- Incident & Loss Event Logging
- Captures details of compliance or operational risk events and remediation.
- KRI Monitoring
- Tracks Key Risk Indicators defined within the risk management framework.
- Linkage of Controls to Regulations
- Maps internal controls to regulatory obligations for better gap detection.
- Periodic Risk Review Scheduling
- Plans recurring reviews and updates to risk assessments.
- Risk Control Library
- Central repository for standard controls and their effectiveness assessments.
- Risk Heatmaps
- Visualizes areas of highest compliance and operational risk.
- Risk Mitigation Workflow
- Structured processes for investigating and closing out identified risks.
- Risk Scoring Engine
- Calculates risk scores based on current regulatory and operational exposure.
- Scenario Analysis
- Assesses impact of hypothetical compliance breaches or regulatory changes.
Scalability & Performance
Ensures system remains responsive and reliable as data volumes and user counts increase.
- Cloud and On-Premise Support
- Supports both deployment models, as needed by the organization.
- Concurrent User Support
- Handles simultaneous logins and usage by multiple compliance staff.
- Disaster Recovery
- Ability to recover compliance data and settings after critical failure.
- Elastic Storage Scaling
- Automatic increase in storage allocation as data grows.
- High-Volume Data Processing
- Capable of ingesting and analyzing large sets of transactional data.
- Load Balancing
- Distributes workload efficiently across servers.
- Redundancy & Failover
- Backup mechanisms to maintain service during system outages.
- Response Time
- Average system response time under maximum load conditions.
- Scheduled Downtime Notifications
- Advanced notice and minimal disruption during system maintenance.
- Uptime Guarantee
- SLA-based assurance of system availability.
Security & Privacy
Protects sensitive compliance data and ensures privacy obligations are met.
- Advanced Threat Detection
- AI or signature-based recognition of malicious activity.
- Audit Logging
- Immutable logs of all system activity.
- Data Encryption (At Rest and In Transit)
- AES, TLS, or equivalent encryption for compliance datasets.
- Data Masking
- Hides sensitive data when not absolutely necessary for user role.
- Data Retention Controls
- Configurable settings for how long sensitive information is stored.
- GDPR/CCPA Compliance Tools
- Mechanisms to support global data privacy regulations.
- Granular Access Controls
- Permissions at data, action, and record levels.
- Penetration Testing Certification
- Third-party security testing on a regular basis.
- Security Incident Notification
- Alert system for detected security breaches.
- User Authentication Options
- Choice of password, token, or biometric login.
Surveillance & Transaction Monitoring
Automated oversight over trades, employee transactions, and fund operations for suspicious activity, insider trading, and other risks.
- AML Screening
- Automated screening for Anti-Money Laundering (AML) flags in fund flows and counterparties.
- Counterparty Risk Assessment
- Evaluates compliance risks associated with trade counterparties.
- Employee Personal Trading Monitoring
- Tracks and reviews personal trades by relevant employees for policy compliance.
- Insider Trading Detection
- Identifies patterns and suspicious activity suggesting insider trading.
- Pattern Recognition
- Machine-learning based detection of unusual or anomalous patterns in transactions.
- Surveillance Rule Customization
- Allows user customization of surveillance scenarios and thresholds.
- Threshold and Limit Monitoring
- Flags trades and positions exceeding predefined compliance limits.
- Trade Surveillance
- Monitors trades for potential market abuse, manipulation, or limit breaches.
- Transaction Velocity Monitoring
- Tracks frequency and volume of transactions.
- Watchlist & PEP Screening
- Cross-checks parties against global watchlists and Politically Exposed Person (PEP) databases.
Usability & User Experience
Facilitates ease of use, learning, and adoption by compliance professionals and other stakeholders.
- Accessibility Features
- Support for WCAG, screen readers, and keyboard navigation.
- Customizable Dashboards
- Users can tailor home screens to their functional requirements.
- Feedback & Support Ticketing
- Easy method to report issues and request enhancements.
- Help & Training Resources
- Contextual help, tutorials, and user guides built into the application.
- Intuitive User Interface
- Modern UI simplifies complex compliance scenarios for all users.
- Localization & Multilingual Support
- Usable by global teams in multiple languages.
- Onboarding Wizard
- Guided setup process for new users or teams.
- Responsive Design
- Works across desktop, tablet, and mobile devices.
- Role-Based Views
- Interface elements visible or hidden according to user role.
- Search & Filter Functionality
- Powerful search and filtering for large compliance datasets.
User & Workflow Management
Managing user access, workflow automation, and task assignment to streamline compliance operations.
- Bulk User Management
- Efficient onboarding/offboarding and permissions management for multiple users.
- Custom Workflow Builder
- Admins can configure or adapt workflow steps to fit internal compliance procedures.
- Delegation & Escalation
- Automated reassignment of tasks due to absence or escalation due to time-sensitive issues.
- Multi-Factor Authentication
- Layered security for user login and system access.
- Role-Based Access Control
- Assigns user permissions based on job function or seniority.
- SLA Tracking
- Monitors task turnaround against internal and regulatory deadlines.
- Task Notifications
- Automated alerts and to-do reminders for compliance staff.
- User Activity Monitoring
- Tracks and audits user activity to prevent unauthorized changes.
- User Audit Trail
- Logs all actions taken by users for compliance and internal review.
- Workflow Automation
- Automates routine compliance tasks and approval processes.