Compliance, be it Shariah, green, environmental, social, and governance (ESG), has the same workflow since they all revolve a client requiring the elimination of certain investment vehicles based on certain criteria, and since these customer requirements have been around for a long time, one would expect a certain level of maturity of the technologies, processes and workflows involved in the task to simplify the process, reduce its cost, and eliminate the errors. Surprisingly, that not what I’ve seen at all. Glue on solutions with a mesh of Excel sheets at the foundation form the basis of what most firms use for compliance today, and the result is that this part of the investment system is not stable, you have subject matter experts with minimum transparency delivering a spreadsheet that is bolted on a trading system then updated manually.
We chose to deliver our compliance results using a web based platform that includes automates the compliance cycle, managers synchronize their positions and securely collaborate with their compliance teams, and the audits, even third party audits, are supported by the system. Clients love that because it goes above and beyond what a spreadsheet based solution could ever do, and because they have a full audit trail of the whole investment cycle, all while maintaining security and privacy.
So when you think of compliance, think of all the things a compliance solution should be able to offer on top of timely accurate data to help you run efficiently.