Compliance Software FAQs

How does an electronic pre-clearance work?

An employee logs into the system and completes a short form. If you use auto approval and no business rules are broken, the employee receives immediate notification that the trade was approved. If you use manual approval or business rules are broken, the approver receives email notification of the trade request. Upon approval or denial, the employee receives email notification.

Does your system have a security master?

Yes.

Do I have to pay extra for the security master?

No.

What exchanges does your security master support?

120 stock exchanges in 90 countries.

What if I do not require trade pre-clearance?

You can still use the system to automatically review brokerage statements. Checking statements against restricted lists, client trades, holding periods, etc. takes seconds instead of hours.

How does automated brokerage statement review work?

When brokerage statements arrive via electronic brokerage feed or are manually entered, the system checks them against customer configured business rules. For each rule that is broken, a personal trading exception is created and assigned to Compliance. Compliance investigates the exception, resolves it and marks it closed. A complete audit trail is maintained for auditors.

Can I customize my business rules?

Yes. You configure which business rules you want to check. If you have a business rule that Compliance11 does not support yet, Compliance11 works with you to add the business rule to the system for all customers to use at no charge to you.

Can different employees have different business rules?

Yes. You can define as many groups of employees as you like. Each group can have its own business rules.

Can I have multiple restricted lists?

Yes. You can define as many groups of employees as you like. Each group can have its own restricted list.

What do I have to do to setup an electronic brokerage feed?

You complete paperwork authorizing the feed. 1-2 weeks later data starts showing up in the system. No involvement from your IT department is necessary. (Certain brokerages are more involved and require more time.)

Which brokerage firms do you support?

Data feeds can be provided for any brokerage that can deliver data electronically.

What if I cannot limit which brokerages my employees trade at?

Firms that cannot limit the brokerages their employees trade at typically get brokerage feeds for the large brokerages. For other brokerages, they either (1) have employees enter their transactions as part of their monthly transaction confirmation, or (2) have an admin enter the transactions from the paper brokerage statement. Entering the statement by hand is typically faster than doing a manual statement review.

How many electronic brokerage feeds to customers typically have?

1-5. There are diminishing returns at some point.

Can I upload client transactions from my order management system?

Yes. Once uploaded, the transactions can be checked during trade pre-clearance and can be used to create the Front Running Report.

Can I automate my quarterly transactions and holdings submission?

Yes. The system supports periodic employee entry of transaction and holdings data. However, most firms that get electronic brokerage feeds do not use this feature.

How do I create a questionnaire?

The intuitive interface allows non-technical employees to create questions with answers that can be configured to accept text, radio buttons, drop down boxes, numbers, dates, etc.

Can different employees receive different questions?

Yes. Employees can belong to one or more groups. Questionnaires can be sent to one or more groups of employees.

What is an Affirmation?

An affirmation is a question on the questionnaire. It is a statement that an employee certifies or attests to (e.g., having read a policy, having disclosed all their outside business activities).

What is a Disclosure?

A disclosure is information that an employee discloses to their company (e.g., an outside business activity, personal contact information, etc.). Disclosures can be routed for multiple levels of approval. Disclosures can also persist from questionnaire to questionnaire so they do not need to be disclosed again.

Do employees need to reenter disclosures each year?

No. The system optionally carries them forward to the next questionnaire.

Can I search the disclosures for a keyword?

Yes. There is a keyword search that searches every field in the disclosures.

Will brokerage account disclosures populate Personal Trading and vice versa?

Yes.

What else can I use the Affirmations and Disclosures module for?

Customers are using the system to replace all emails that require a response. This way they can track delinquent responses and have all the responses electronically filed. Some examples include: monthly branch review checklists, weekly email review attestations and risk review exception notations.

Why do I have to upload my policies? Can I link to them instead?

Uploading the policy allows the system to produce the exact version of the policy that the employee affirmed to.

What can I track in the Gifts and Entertainment module?

You can track gifts, entertainment, political contributions, charitable contributions, etc. You can create as many gift types as you like.

Can I have different limits for different groups of people?

Yes. You can define as many groups of employees as you like. Different limits can be set for each group.

Do I have to approve gift requests?

You can configure your business rules to require manual review of all gift requests or to automatically approve gift requests as long as they do not exceed the limit.

What if a gift recipient accidently gets added to the system twice?

The administrator can combine individuals and companies. To prevent this problem, employees choose companies and individuals from a dropdown list.

What sorts of things can I use Case Management for?

You can manage any type of work item such as trade errors, customer complaints, regulatory inquiries, etc. You can create as many case types as you like.

Can I limit who can see which cases types?

Yes. You can also limit employees so they can only create cases or only service cases assigned to them.

Can I assign a case to multiple people?

Yes.

Can I attach files to a case?

Yes.

Is there a complete audit trail of all changes to a case?

Yes. At the bottom of the case, the system logs all changes and who made them.

Do I have to purchase the entire suite?

No. You only need to purchase the modules you want.

What is SaaS?

SaaS stands for Software as a Service which means the software is hosted or on-demand. SaaS is a trend in the software industry that has several advantages for customers. Total cost of ownership is 1/10 to 1/100 that of normal packed software. Little to no IT involvement is required. Implementation times are dramatically reduced. Customers are always on the latest release.

Can I host your solution on my servers?

No. Compliance11's hosted solution is more reliable and secure than most IT departments for a fraction of the cost. Also, Compliance11's support staff is more specialized and responsive than internal IT departments.

Do I have to pay for upgrades?

No. Upgrades are included as part of the subscription agreement.

How often do you release upgrades?

Compliance11 releases approximately four upgrades a year. Upgrades require no involvement on your part. When you login Monday morning, the system has more features. Webinars and training documents are available to educate you on the new features prior to the release.

Do I have to pay for training?

No. Training for your compliance department is included in the subscription agreement. Our customers have found that the application is extremely intuitive and training for employees is not necessary.

How long does it take to implement?

You can implement the system in hours with the exception of electronic brokerage feeds which can typically be implemented in 1-2 weeks.

How much IT involvement is required?

Most of our implementations require no IT involvement. IT involvement is only required if you want an automated data feed other than a brokerage feed (e.g., HR feed, trade desk feed).

Can I request product customizations?

Yes. If you need a feature, chances are others also need that feature. We take your idea and prioritize it with help from our user community. We add new features in each quarterly release. There is no additional charge to you.

Is my data secured?

Yes. Compliance11's security model is more secure than most IT departments. Web browser traffic uses 128-bit SSL encryption. Backend data feeds use PGP encryption. The website is hosted in a physically secure facility, has an intrusion detection system (IDS) and has been penetration tested by a third party. For added protection, certain fields in the database are also encrypted.

What happens if the server goes down?

Compliance11 has redundant servers. If one of the servers goes down, users can log in again in minutes. No data will be lost.

How often is the data backed up?

The database is backed up every two hours.

What happens in case of a disaster?

Compliance11 has a redundant environment at another location. In case of disaster, the environment can be operational hours. At most, two hours of data will be lost.