Regulatory bodies establish rules in designated industries to monitor equity concentrations in order to protect sectors from undue outside influence. Key industries include banking and insurance, defense, mining, media, aerospace, and gaming. Investment management firms are duty bound to comply with all regulatory limits. Challenges include:
With increased trade protectionism and rules tightening brought on by Covid-19, sensitive industries investment rules are becoming more stringent and multiple regulatory bodies often create complex and overlapping rules.
There is no standardized rule set that firms can reference across industries and jurisdictions.
To monitor their holdings accurately, firms must solve the industry-classification challenge by uncovering sensitive industries embedded in a target investment’s parent-subsidiary corporate structure.
Furthermore, firms need access to granular industry classification data to ensure mandated rules are correctly applied.
Informed by continuous feedback from AxiomSL’s global shareholding client community
EquityView extensible data dictionary architecture enhanced with a new industry classification methodology
Rules engine underpinned by a curated library covering more than 600 rules across 80 jurisdictions from aosphere’s (an Allen & Overy LLP affiliate) Rulefinder SD
Notifications delivered on sensitive industries-specific event types including relief or pre-approval
AxiomSL’s approach incorporates crucial parent-child subsidiary relationships in a unique classification methodology driven by rules.
Captures information from multiple industry classification sources such as GICS, TRBC, and NAICS.
The module’s engine calculates beneficial ownership percentages based on thresholds stipulated in the rules.
Generates notifications including client parameterized proximity threshold warnings, pre-approval and prohibited/restricted breaches, and crossed threshold alerts.
Curated library of over 600 rules across more than 80 jurisdictions leveraging aosphere’s legal memo feed.
Clients have the control and flexibility to override or originate rules to suit specific business case needs for sensitive industries monitoring and automation.
Users can configure the relief management process; dashboards provide visibility into thresholds and expirations.
Clients can also configure compliance elements that impact how rules are applied such as foreign vs. local investor or FBO vs. non-FBO status.
The EquityView data architecture for global shareholding disclosures facilitates mapping datasets across legal entities, position source systems, and market data sources.
Includes optional access to Refintiv market data attributes via an adaptor.
A fully managed, secure RegCloud deployment ensures AxiomSL shoulders the burden of rule maintenance globally.
(Alternatively, the module is deployable on-premises.)
Client community guides assumptions and provides continuous-improvement feedback ensuring industry-standard best practices
Proximity checks and dashboards inform compliance and monitoring teams and enable proactive portfolio adjustments
End-to-end data management and monitoring capabilities deliver current and historical datasets for successful audit defense
Leveraging multiple industry classification standards ensures accurate issuer pre-mapping, reducing risk and maintenance overhead
Flexible rule creation capability enables firms to incorporate their unique business and investment scenarios, and manage regulatory relief
RegCloud deployment delivers operational efficiencies enabling firms to concentrate resources on investment oversight and control
New York, London, Singapore, 19 November 2020: AxiomSL, the industry’s leading provider of regulatory reporting...
By: Gaurav Chandra, Product Manager, Global Shareholding Disclosures, AxiomSL Sovereign nations have always been concerned...
In this webinar, a team of experts will discuss how to rethink the data challenges...
Should we be excluding external client holdings from principal holdings in our position aggregation?
Are we considering equity derivatives as in-scope for sensitive industries monitoring?
How are we deciding whether to bind an issuer to a regulator/state threshold?
How are we prioritizing jurisdictional logic: home member state vs. country of incorporation, etc.?
Are we able to uncover additional industries hidden within the parent-subsidiary relationship?
Are we able to track our pre-approval process from inception to expiry?
Learn more about AxiomSL’s Global Shareholding Disclosures solution
Speak with a Sales Representative.