Evare, a managed utility service provider specializing in the acquisition, enrichment, transformation and delivery of financial data, today announced it is extending its current services and is automating the collection of compliance data for employee trading accounts at outside firms.
The service automates a largely manual process by which firms must comply with reporting and oversight requirements for employee trading activity under FINRA (Financial Industry Regulatory Authority) rule 407.
Financial institutions that need to monitor and track such activity can now utilize Evare's managed service to improve on efficiency and accuracy. Currently this is a very labour intensive, manual process that involves large amounts of paper and provides little oversight or control.
"Some of our customers need to monitor as many as 5000 employee accounts at more than 50 institutions, resulting in 15,000 paper statements to manage and process every month. By automating this process our customers have been able to achieve a 90 percent STP rate, making it a far more efficient and cost controlled operation," said Robert C. Mansmann, Senior Vice President of Sales at Evare.
Rather than manually re-keying the required data into spreadsheets, Evare's existing electronic data feeds provide a single connectivity point between financial institutions and their counter-parties, subsidiaries and internal systems. As it supports multiple communication protocols, numerous connectivity options, and will transform the data into the format required by customers, the service provides a flexible tool for supporting account administration and the changing roster of financial institutions needed to remain compliant.
As a result, institutions' control and compliance teams now receive an oversight of all trading activities and end of day balances on a daily rather than monthly basis. As such they can identify and act on compliance issues in a timely manner.
From an operational point of view, brokers and investment managers are now able to lower and mitigate the risk inherent to the existing manual processes, improve overall efficiency and reduce potential liabilities and other risks.
Joe Souza, Vice President Operations at Evare, said, "Our business model di d dictates that we can easily scale our existing data feeds which are directly connected to the systems of record within each financial institution. Because we have our own proprietary technology for data mapping, any inbound feeds can easily be added to our existing links, and processes can simply be repeated. As we are system and data agnostic we remain independent - which appeals to clients, especially with regards to corporate governance efforts."