Investment Compliance Monitoring Software

• Compliance governance and program management.
• Employee conduct, attestations, and personal trading.
• Vendor risk and compliance management.
• Counterparty onboarding and certifications.
• Fund administration.

• Fiduciary duty and suitability.
• Adherence to pre-, in-, and post-trade mandates.
• Investment limits (concentration, liquidity, leverage, derivatives).
• Trading governance (best execution, fair allocation).
• Trade surveillance and market abuse.

• Asset valuation and pricing.
• Fee and expense calculation and disclosure.
• Proxy voting, stewardship, and corporate actions.
• ESG and sustainability.
• Regulatory reporting.
• Data recordkeeping, retention, and protection.

Compliance management solutions provide a centralized, versioned repository for the investment firm’s compliance policies. They can automate the company’s unique change review, approval, lineage, and traceability workflows to prevent “shadow” compliance setups and policy drifts. Users can add compliance rules (by jurisdiction, entity, employee role, strategy, asset class, client mandate, etc.) and link them to the related policies. Built-in role-based access controls ensure only authorized employees can create, approve, and enforce control policies and rules.

Compliance teams can set up jurisdiction-specific regulatory rules for pre-trade, in-trade, and post-trade compliance via customizable templates. The software automatically links each obligation to user-defined data elements from the firm’s internal and connected external systems. Custom systems can accommodate any necessary regulatory mandates, including rules for compliance programs (SEC Rule 206(4)-7), recordkeeping (SEC Rule 204-2/31a-2), liquidity (SEC Rule 22e-4), valuation (SEC Rule 2a-5), best execution (FINRA 5310, MiFID II), and sanctions screening (OFAC).

A drag-and-drop modeling interface allows compliance experts to design multi-step checks with tailored composite logic for simultaneous data matching against internal and regulatory restrictions. Users can configure custom checkup sequences, automation triggers, and exception-handling and backup-control rules. Custom solutions can include policy-as-code export, scenario modeling, and what-if analysis tools so users can test and refine compliance automation workflows before go-live.

Compliance systems host compliant templates for regulatory filings (Form ADV, Form PF, Form 13F, Schedules 13D/13G, Form CRS, N-PORT, N-CEN, N-CSR, N-MFP, N-PX, EMIR, MiFIR, and more). They maintain template version control and hard field lineage to the original regulatory mandates. Custom systems can automate report template auto-population with data from pre-defined sources and pre-submission report vetting for content accuracy, completeness, and format schema matching.

Custom solutions continuously aggregate trade, portfolio, benchmark, pricing, corporate action, issuer, and investment teams’ activity data. They automatically match the data against active compliance rules and log validity decisions, adhering to regulators’ recordkeeping requirements and WORM-compliant retention policies. A monitoring engine applies trend-based analytics to diagnose compliance-sensitive aspects (desk error rates, portfolio concentration, market timing, etc.) and identify potential issues early so teams can prevent violations.

Compliance teams, risk owners, legal officers, and managers can view risk alerts on role-specific dashboards or receive them via email, messaging apps, and integrated SOAR/SIEM systems. Each alert provides links to the risk-relevant investment activities, compliance rules, and risk/breach evidence, enabling one-click issue investigation and escalation. Custom tools can be designed to automatically enforce temporary hard stops, e.g., blocking trades or freezing accounts until the issue is reviewed.

A diagnostics engine reconstructs the causal chain across investment manager behaviors, data feeds, and operational controls to determine the root cause of the breach. The software segments issues by configurable criteria (portfolio, asset type, manager, strategy, counterparty, etc.) and scores their materiality, severity, urgency, and financial impact using custom formulas. It automatically triages issues for handling and generates issue summaries and evidence trails for investigation boards.

Custom solutions automatically convert breach alerts into trackable issue tickets and assign task owners, resolution deadlines, and evidence requirements, as defined in preset compliance SLAs. Compliance specialists can update the task status as it progresses through investigation, corrective, and preventive action stages. The software can automate resolution activities under the firm’s proprietary compliance playbook, e.g., block trades across problematic venues, add non-compliant issuers to a restricted list, or trigger employee re-attestation requests.

Using the software, compliance teams can automatically aggregate and monitor regulatory rule updates, new guidelines, enforcement actions, and consultation papers across domain-relevant authorities (e.g., SEC, FINRA, CMA, ESMA). The solution identifies which investment workflows, reports, and control mechanisms are affected and assigns change management owners and deadlines based on each regulation’s effective and compliance dates. It records updates in a traceable ledger so teams can easily track what’s changing.

Compliance systems calculate and track metrics like the number of compliance breaches, average investigation time, percentage of issues resolved on time, recurrence of violations, and control effectiveness scores. Drill-down and drill-up dashboards can display metrics across any selected dimensions, from separate assets and operations to the enterprise level for compliance and C-level teams. Custom solutions can auto-generate reports on chosen KPIs and auto-compose compliant disclosure packs for regulators and investors.

Compliance platforms automate periodic and ad hoc assessments of compliance management processes based on established testing frameworks (e.g., RCA, RCSA) and the investment firm’s proprietary test scenarios and sampling models. They analyze period-bound metrics (control coverage, breach rates, resolution cycle time, etc.), compare them against historical KPIs and sectoral compliance benchmarks, and flag areas of inefficiency and superior performance, giving the firm insights for continuous optimization of compliance workflows.

Custom compliance management solutions can be designed with built-in controls and documentation that meet enterprise security standards like SOC 2 Type II, ISO 27001, ISO 20022, NIST 800-53, NIST CSF, and CIS. They can be powered by field-level data encryption, personal data tokenization, multi-factor user authentication, and other security mechanisms. The solutions can include privacy-by-design features (configurable data residency, consent logging, etc.) supporting GLBA, GDPR, and CCPA compliance, as well as incorporate data-loss prevention safeguards that satisfy SEC’s mandates.

Compliance systems can employ large language models (LLMs) to automatically parse multi-format regulatory documents (investment rule releases, no-action letters, guidance notes, etc.), extract details like obligations, effective dates, and enforcement deadlines, and summarize the insights into structured change reports. LLMs can provide concise, natural-language explanations of new regulatory requirements and their impact on investment operations. They can also help compliance teams plan targeted updates to internal control and automation rules.

Tailored machine learning (ML) models can be applied to analyze investor interactions, portfolio management, trading, reporting, market, and counterparty risk patterns and capture latent compliance risk signals that cannot be recognized by statistical tools. ML-produced predictions can trigger preemptive checks and user-defined blocking actions. Compliance solutions should incorporate model drift monitoring, bias detection, and explainability mechanisms (e.g., SHAP, LIME) to meet regulatory requirements for model risk management.

Upon a textual or voice request from compliance specialists, smart copilots powered by generative AI can quickly find task-relevant data, prepare investigation materials with linked evidence, and draft compliance reports. They can also suggest tailored compliance checklists for new assets, service lines, and geographies, and map optimal, context-aware steps for resolving compliance issues. Explainable AI techniques ensure transparency of the logic behind intelligent suggestions, reinforcing model risk governance and accountability.

Custom solutions can incorporate agentic AI components to enable intelligent automation of end-to-end compliance workflows. For example, in trade ordering, an AI agent can detect a potential breach, double-check it against regulatory and internal rules, notify operational and compliance teams, instantly block a non-compliant order, and generate an audit-ready report. Such agents can independently search task-relevant data sources and trigger actions across connected systems. Rule-based guardrails and human-in-the-loop oversight are applied for agent control.

To monitor portfolio compliance against investor mandates, target weights, asset class restrictions, and risk limits.

To verify account recordkeeping, valuation, post-trade, and financial reporting compliance.

To access order details required for automated pre-trade and post-trade compliance checks.

To align investment compliance rules with client-specific mandates and track adherence to servicing obligations.

To control investment team member attestations, certifications, and adherence to the firm’s code of conduct.

To reconcile internal settlement, position, financing, and corporate action data against custodians’ data and quickly detect breaches.

Financial data platforms (e.g., Bloomberg, ICE), ESG databases, asset-specific databases (real estate databases for REITs, startup registries for VC firms, etc.).

To check limit and valuation compliance against certified reference data.

Of regulatory bodies (SEC, FINRA, FCA, etc.) and curated providers

To automatically intake global and jurisdictional regulatory rules, updates, and enforcement actions.

E.g., SEC’s EDGAR, FINRA gateway, Adenza

For electronic submission of regulatory filings and automated tracking of report processing statuses.

For buy-side firms with separate execution platforms or low-latency trading desks.

For latency-sensitive pre-trade compliance checks, in-trade surveillance, and immediate enforcement of trading restrictions.

For registered investment funds or advisors acting as fund administrators.

To monitor the market-timing compliance of shareholder-level trading activity across mutual funds, ETFs, CEFs, and UITs.

A platform-based compliance solution (e.g., built on Microsoft Power Platform) with low-code policy and rule configuration engines.

• Rule-based automation of core monitoring workflows (pre-trade and post-trade checks, exception escalation, attestation capture).
• Single-jurisdiction regulatory compliance (e.g., US SEC and FINRA).
• Support for 1–3 traditional asset classes and instruments (e.g., equities, bonds, mutual funds).
• 3–6 core integrations (internal investment systems and a market data provider).
• Batch statistical analytics and forecasting.

A custom compliance platform blending platform-based and proprietary automation components.

• Rule-based and analytics-driven automation of compliance risk monitoring and investigation tasks.
• Multi-jurisdiction oversight (e.g., regulatory compliance in the US and 1–2 additional regions, such as the EU and KSA).
• Support for 3–8 traditional and alternative asset classes, including derivatives, ETFs, and private funds.
• 5–15 integrations via ready APIs (internal systems, market data platforms, regulatory gateways across jurisdictions).
• ML-powered stream analytics for compliance trend detection, breach triaging, risk prediction, and response effectiveness forecasting.

A fully custom, enterprise-grade compliance system powered by advanced analytics and intelligent automation.

• Rule-based, GenAI-supported, and agentic orchestration and automation of compliance workflows across global portfolios.
• Multi-jurisdiction compliance (US, EU, GCC, APAC, offshore regimes) with dynamic rule libraries covering SEC, CFTC, CMA, ESMA, and other frameworks.
• Support for all major asset classes, including structured products, alternatives, and digital assets.
• 15–30+ integrations across business lines and regions (investment, trade, and administrative tools, specialized data platforms, regulatory gateways, blockchain systems).
• AI-powered diagnostic and predictive analytics and real-time optimization suggestions.