For a prominent Middle Eastern sovereign wealth fund, the task of managing regulatory compliance across a growing number of jurisdictions, with its diverse portfolio of asset classes, was becoming more cumbersome and tedious by the day. A common problem amongst today’s investment firms, maintaining compliance has become a moving target amidst globally changing requirements.
Committed to maintaining its strong regulatory standing and unblemished reputation - and with a willingness to embrace technological innovation - the fund recognised that the answer lies in modernising its shareholding disclosure process. The client would need something better equipped to handle its global investment mandate, replacing its current solution provider. In order to set themselves up for long-term success and to future-proof their monitoring and reporting capabilities, automation was necessary.
However, a problem still persisted. Faced with a maximum three-month timeline for implementation, the client knew they would need to draw on all available resources to make it happen. A structured approach to configuration and testing, thorough analysis of relevant rules to ensure adherence to global standards, combined with deep understanding of regulatory requirements would all be necessary to ensure a successful outcome.
After careful consideration, the client determined that a combination of FundApps’ Shareholding Disclosure solution, Simcorp’s investment management system, and Dimensional Community – a SimCorp advisory and consulting firm - would equip them to meet the most complex compliance requirements. Additionally, the partnership between FundApps and SimCorp would provide something other providers couldn’t - an integrated solution.
SimCorp’s Integration with FundApps
SimCorp provides a standard integration package designed to connect seamlessly with FundApps compliance platform. This pre-built integration accelerates implementation timelines and simplifies project delivery. By automating daily data transfers of positions and portfolio structures, compliance teams always have access to up-to-date information. The integration supports complex portfolio structures, enabling accurate regulatory reporting across asset classes and jurisdictions. Its ready-to-use data mapping and transfer protocols, tested and validated in multiple environments, streamline the process significantly.
Beyond basic data exchange, the integration enables automated calculations and the export of disclosure-relevant information. Established connection points between SimCorp and FundApps eliminate the need for custom development, avoiding delays typically associated with bespoke integrations.
FundApps Shareholding Disclosure Solution
Shareholding Disclosure monitors requirements in over 100 jurisdictions for beneficial ownership, short selling and takeover panels. Position data is checked against Shareholding Disclosure, Takeover Panel and Short Selling rules enriched with legal, market and regulatory data from LSEG and Bloomberg.
The rules engine identifies if, where, and when disclosures are required, notifying clients to which regulator they must be sent. More than 200 forms are automatically generated in the Shareholding Disclosure service, enhancing operational efficiency while mitigating risk.
A Collaborative Implementation Approach
The implementation of integrated FundApps and SimCorp solutions was an active collaboration among all stakeholders. Their meticulous approach to configuration, combined with a strong grasp of regulatory requirements, was instrumental in achieving a successful implementation within the three-month target. FundApps dedicated implementation managers, alongside the Dimensional Community, played a central role.
The teams led comprehensive assessments to align on the client needs relative to existing processes. By facilitating cross-party coordination to maintain a cohesive and efficient workflow, the approach combined the technical expertise of the FundApps team with the business knowledge of the client, and the industry experience of Dimensional Community. Specialised insights from each party were instrumental in ensuring an efficient delivery.
The integrated solution provided by FundApps and SimCorp was able to provide the client a clear advantage compared to the legacy system they had before: freedom from the manual burden of tracking, managing, and maintaining individual compliance rules. Fully implemented, they were able to focus on strategic decision making rather than the necessary but onerous aspects of regulatory compliance.
With compliance monitoring operating automatically in the background, the client was able to reduce operational risk and reallocate resources to higher-value tasks. As compliance demands grow in complexity, the value of an automated, specialised system becomes even more pronounced. By combining FundApps regulatory acumen, SimCorp’s robust investment management tools, and Dimensional Community’s collaborative implementation support, this integrated solution transformed compliance for this client from a daily burden into a streamlined, automated process.