New RegTech Suitability API for concentration analysis introduced by Univeris
The Suitability API ensures that a comprehensive framework is implemented that allows for prevention and active monitoring of activity for financial portfolios in over-concentrated scenarios. Over-concentration of financial positions has a significant impact on investors, advisors, supervisors, and compliance officers alike.
Investors Impact: Greater Than Normal Losses
Investor portfolios that may be overexposed to specific high-risk sectors or asset classes, expose the investor to greater than normal losses should those categories experience economic difficulty.
Advisors & Supervisors Impact: Reputation, Value Proposition, and Financial Liability
Advisors that make recommendations that further over-concentrate portfolio risks or that fail to address exposure in a timely manner, risk damaging their reputation, value proposition, and exposing themselves to financial liability due to greater than expected losses by investors.
Supervisors that are responsible for monitoring trades and ensuring suitability of investments are unable to accurately conduct concentration and suitability analysis or must opt do so manually.
Compliance Officers: Regulatory Sanctions, Fines
In addition, without being able to properly monitor over-concentration, compliance officers are not able to adhere to regulatory rules and guidelines, exposing the firm to increased liability for regulatory sanctions, fines, and investor losses.
Univeris Suitability API
Designed for capital markets, financial institutions, and those within organizations who are responsible for ensuring the suitability of investor assets, the Concentration Analysis API is a service that enables a fast and flexible analysis of suitability for any portfolio of investments.
“Unlike in-house solutions or other third-party applications, our API does not require complex mapping or require use of multiple applications by users,” says Richard Binnendyk, EVP of Enterprise Wealth Management. “The Suitability API is a market-ready service that is easily utilized by any system to return an accurate suitability assessment.”
To learn more about the Suitability API, fill out the form below.