Prevent getting fined
The consequence of lacking a clear solution to the Know Your Customer process in investment management, is that every investment manager has their own way of interpreting and executing this process. This can, often entirely by accident, result in practices which might not conform to the legal requirements. An offence which is usually fined by authorities.
A common trend is the increasing pressure on investment managers to comply with all the legislation and regulation regarding their field of work. An example of this is the introduction of MiFID II (Markets in Financial Instruments Directive, the European investment guideline) in January of 2018. This will lead to increasing pressure on the business model of investment managers as it is a costly and time-consuming process to comply with all the regulations. SMT is working with Hart Advocaten to make sure our products comply with the regulations set by MiFID II
Untill MiFID II
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Continually monitoring the KYC solution
Noëlle Wijnstekers, a partner at Hart Advocaten, is the legal expert with the necessary KYC knowledge to test the SCOPE KYC Cloud solution against the acting regulations. In the future, we will continue to consult Hart Advocaten for legal aspects, and regularly test the SCOPE KYC Cloud solution against acting regulations.
MiFID II is not the only change
The General Data Protection Regulation (GDPR) which will be enforced from the 25th of May 2018 will also increase the pressure on the market. The current guideline regarding the protection of personal data is implemented in the Wet Bescherming Persoonsgegevens (WBP), the Dutch law regarding the protection of personal data. SCOPE’s KYC Cloud solution conforms to the various requirements set by the GDPR.
An example of this is the bilateral use of information (transparency and trueness). The trueness is guaranteed because the client has the option to change his details. The SCOPE KYC Cloud solution has a straightforward set of limitations set according to the relevant laws and regulations. The SCOPE KYC Cloud solution meets a large number of the requirements set by the AVG/General Data Protection Regulation 2018.In addition, several requirements set by the GDPR 2018 will be taken on by Scope Marketing Technology as administrators and the Microsoft Azure Cloud Platform which has been selected as hosting agent for the SCOPE KYC Cloud solution. The Microsoft Azure Cloud Platform is obliged to meet requirements set by the GDPR 2018.
Untill the GDPR
Primary requirements from the AVG/General Data Protection Regulation
DISCLAIMER: The SCOPE KYC Cloud solution is software that allows an investment managers employees, and clients, to work through the KYC client databasing process. The KYC databasing questions, which are used, are based upon active regulations such as the MiFID, MiFID II and the General Data Protection Regulation. (Also known as Algemene Verordening Gegevensbescherming (AVG), Dutch authority of personal data) SCOPE does not offer a guarantee.