Investment compliance has become increasingly vital within the wealth management industry. Compliance Officers need flexible tools that allow them to implement constraints across an entire department, or within just one client account. They need to be able to target a single asset or a whole industry. And they need to be able to implement both pre-trade constraints and post trade reports.

  Severity Levels
  Specific Asset Constraints
  Account Constraints
  • Employee conflict (relationship)
  • Industry restrictions (socially conscious)
  • Cash balances
  • Country restrictions
  • Minimum income requirements
  Asset Class Constraints
  Implementaion Points
  • Pre-Trade (tested as each trade is proposed)
  • Save Orders (tested after all trades have been proposed)
  • Post Trade -- Scheduled reports (daily, monthly, etc.)
  • Sectors vs S&P 500 Benchmark®
  • Asset Allocation (within X% of investment targets)
  • Domestic Equity weight
  • Small & Mid Cap weight
  • Foreign Developed weight
  • Foreign Emerging Marget weight
  • High Yield Fixed Income weight,
  • etc.
  • Realtime
  • Historical
    • Date of compliance event
    • Approved by (name & date)

The APCO System has been designed to handle the complexities of investment compliance throughout the trading process. The APCO System begins by importing any constraints already maintained in external systems, like pledged holdings, approved securities, etc. APCO then complements these with numerous additional rules maintained by the Compliance Officers.

  • Warning -- wealth manager can review
  • Password – compliance officer supplies password
  • Critical – not tradable
  • Do not buy
    • Client prohibition
    • Departmental "approved asset" list
    • Rating agency (e.g. Moody’s Rating®)
  • Do not sell
    • Pledged shares (held for collateral)
    • Client Prohibition
    • Founder stock (rule 144)
    • Non-tradable registration (held in vault, etc.)
    • Corporate action pending
  • Wash Sale prohibition