The SCOPE KYC Cloud portal offers a safe, efficient and user-friendly environment for the clients and advisors of investment managers to exchange information for the benefit of the client stock-taking process.
Conversations with investment managers indicated the clear need for a standardised solution for the entire Dutch market. One of our customers remarked: “It would be great if a party would arise to develop a generic market standard for Know Your Customer process which meets all the required regulation and legislation”.
For SMT, this provided the incentive to start developing the SCOPE KYC Cloud portal.
Based upon customer requests, an investigation by the AFM into the quality of service provided by investment managers on the Dutch market and SMT’s experience in implementing CRM software for investment management, SMT has developed a new state-of-the-art Know Your Customer portal for investment managers in a co-creation project with experts from various fields.
The SCOPE KYC Cloud portal is the result of a co-creation project. Experts from various fields were involved in the development, such as legal experts, investment managers and experts in client data-basing, scenario analysis and KYC.
We have made a four part video series on the SCOPE KYC Cloud portal. Each one of the videos highlights a different part of the KYC portal. More videos can be found on our Youtube channel
The risk attitude of a client is one of the hardest aspects of the client profile. It is important to make this risk tangible. The largest risk of investing for the client is the risk of not meeting the set investment goals.
To make the risk tolerance tangible, in other words to determine the risk acceptance of a client, the SCOPE KYC Cloud solution uses scenario analysis tools. Based upon the results of various scenarios the client is given insight into the relation between returns and risk. This allows the client to reach a considered decision on the risk he is willing to take. The scenarios are designed to show the financial consequences of realising a smaller or higher capital than the goal at the end date. Using these tools, the adviser can find out what risk is acceptable for the client.
In addition to the objective risk tolerance, which is primarily based on numbers and the capacity to handle losses, there is also the subjective risk tolerance. How does the client handle a decreasing stock value? Most investment managers don’t investigate a client’s subjective risk tolerance. The AFM believes that a subjective risk tolerance assessment should be a standard component in every KYC stock-taking. This is voiced in multiple publications and presentations.
In terms of subjective risk tolerance we are working with FinaMetrica. FinaMetrica has assembled a questionnaire with twelve easy to answer questions. Based upon the answers a client profile is created. The technology behind the process is scientifically proven, it has been used over a million times and it is self-learning.
The FinaMetrica profile dictates and limits the possible compositions of the investment portfolio by, for example, determining a maximum percentage of shares for a risk profile.
You would never want to jeopardise your clients livelihood by mis-framed expectations and wrong advice. To reduce the changes of miscommunication we integrated both a subjective and objective risk tolerance tool. The combination of both creates a ‘best practice’ risk profile. The SCOPE KYC Cloud Portal combines the data from the EPI Engine with FinaMetrica test results and with the clients’ self assessed knowledge and experience. It generates a detailed report on which portfolio best suits the client and why. It even details why other possible portfolios do not meet the client’s needs.
Wealth and asset managers must comply with an ever increasing number of requirements such as MiFID II and the GDPR (General Data Protection Regulation).
To ensure compliance with the regulations we work with leading law firms in the Netherlands, who are specialised in both financial law and the GDPR compliancy. Our SCOPE KYC Cloud Portal is checked regularly against the relevant regulation and updated if needed.
The combination of both objective and subjective risk assessments creates a ‘best practice’ risk profile. The SCOPE KYC Cloud Portal combines the data from the EPI Engine with FinaMetrica test results and with the clients’ self assessed knowledge and experience. It generates a detailed report on which portfolio best suits the client and why.
Based on this risk profile you can work with your client to determine which financial strategy suits him or her the best.
Selecting the SCOPE KYC Cloud Portal means your sensitive client information will never leave Western Europe. Once saved to the cloud, Microsoft Azure stores the data in the Western European region.
MiFID II and GDPR ready, tested regularly to insure to make sure our SCOPE KYC Cloud portal stays up-to-date.
Best practice risk profiling, with both subjective and objective risk profiles.
Hosted on the Microsoft Azure platform, making sure your information is safe in the cloud.
The SCOPE KYC Cloud portal allows you to scroll back like a movie. Simply select a date, month or year and look at the situation as it was that moment.
While we have some standard integrations. we are able to integrate with all your favorite systems.
Client data-basing without the hassle, with our user friendly KYC portal. Just how you like it.