Shortly after the launch of the Client Portal platform by SCOPE FinTech Solutions, Today's Groep and SCOPE partnered to use the Client Portal to optimize the client intake & boarding process. The SCOPE Client Portal offers clients and asset managers a platform where, in a user-friendly, efficient, and secure way, the inventory of client data required for establishing and continuously monitoring the client's risk profile and the boarding process can take place.
Step 1: the MiFID II based client inventory
The first step in this process consisted of putting the intake side of the Client Portal into use by both clients and Today's Groep employees. This step is now behind us and all clients have a client file in the Client Portal. As part of this project, an integration was also developed with the Portfolio Management System Emily, so that all investment results, reports, and communication are also visible to clients via the Client Portal. This provides Today's Groep with a user-friendly and accessible place for clients to access all their data and information and also meets the requirements of the AVG/GDPR.
Step 2: Client risk assessment & monitoring
An important part of the boarding/client acceptance process is making an internal risk assessment of the client with the resulting risk conclusion. To make a risk assessment, various risk factors are inventoried and brought together to arrive at a central conclusion at the client level. The various components and the conclusion are monitored and periodically refreshed based on the classification and the in-house risk policy.
SCOPE FinTech Solutions has developed the Risk Assessment component as part of the Client Portal and this component has now been successfully implemented and put into use by Today's Groep. This allows Today's Groep to automatically prepare a risk conclusion for all clients based on pre-configured policies so that it can be monitored and ratified. This ensures that it is done for every client and done in a unified manner and since everything is recorded in a certified pdf report as part of the client file it is easy to reproduce.
One of the components of the risk assessment is conducting a UBO investigation if necessary and checking the client for PEP, Sanction, adverse media, etc. The compliance check is therefore a standard part of the Client component in the risk assessment. The results of cases found are of course automatically included as part of the risk calculation.
Since one must permanently comply with laws & regulations, it is important not only to screen a client upon entry and pass acceptance criteria but also to monitor this. After all, the client situation may change over time and this in combination with your policy or laws and regulations may result in necessary action, for example, if one of your clients has become a PEP. The monitor function exists especially for this purpose. The monitor function allows you to do other things while your clients are monitored. How does it work? You place a client on the Monitor list and then this client is screened daily against all sources and mutations in underlying lists and in case of a match you receive a signal to view and handle the match.
Customer risk assessments can change due to changes in laws & regulations or due to changes in their own underwriting policies or valuation of risk values. So it is important that risk assessment sets are flexible and can be adjusted and expanded in the future if needed. Also, underwriting policies of different labels or customer groups/types may differ and this must be configurable. In close consultation with our launching customers, this component has therefore been designed to be flexible and future-proof.
We wish the Today's Groep much success in making and monitoring client risk assessments!