Legal and compliance teams within the Investment and Asset Management sector face their fair share of challenges when it comes to marketing compliance. These challenges can be broadly categorized into three key areas:

1.  Ensuring comprehensive coverage of all relevant regulations
2.  Accuracy and precision in risk detection 
3.  Building a scalable approach to reviews

We cover the need for marketing water-tight compliance in the Investment and Asset Management sector and share a ready to deploy automated solution, tailor made for those in the EU.

Importance of Compliance in Investment and Asset Management

The Investment and Asset Management sector operates within a highly regulated environment, governed by a myriad of local and international regulations. These regulations, such as MiFID II and SFDR, are designed to protect investors and ensure transparency and fairness in the financial markets. The complexity and volume of these regulations can be daunting, requiring firms to stay constantly informed about changes and updates. Non-compliance can lead to significant legal repercussions, including fines, sanctions, or even revocation of licenses.

Moreover, regulatory bodies are increasingly scrutinizing marketing practices, meaning that firms must adopt rigorous compliance measures to avoid being penalized. The stakes are high, and organizations that fail to meet compliance standards risk damaging their reputation and losing the trust of their clients.

The repercussions of non-compliance often take the shape of financial penalties, however the ensuing reputational damage can take years to rebuild. In an age where information spreads rapidly through social media and online news, negative publicity can tarnish a firm’s reputation almost instantly. 

Investors are more inclined to work with firms that are proactive about compliance and ethical marketing practices. By creating a strong compliance culture, firms can mitigate the risk of reputational harm and position themselves as trustworthy and reliable partners in the eyes of their clients.

The Need for Automation in Compliance Reviews

Marketing compliance review software can involve either a bespoke setup that is expertly tailored to the intricate details of your particular organization, or, via a preset library tailored to your industry. Both approaches have their unique advantages, much like selecting between a custom-fitted suit that offers personalized comfort and style and an off-the-rack option that delivers standard sizing and instant availability.. Ultimately, the choice depends on the specific needs and goals of your organization.

IntelligenceBank’s Solution

IntelligenceBank aims to efficiently move clients from a position where there may be a loose systematic approach to risk detection, or scalability issues, to a safer and more consistent compliance review process, making it more efficient to meet regulatory obligations.

For Asset Managers operating in the EU, those looking to enhance their marketing compliance processes can leverage IntelligenceBank’s Asset Management Rule Library. This solution provides a fast, effective way to implement robust compliance checks across marketing, advertising and promotional communications. It is the fastest way to implement robust, consistent and intuitive compliance checks across marketing, advertising and promotional communications. 

EU Asset Management Rule Library

This Rule Library references key EU guidelines, including MiFID II, SFDR, and other ESMA-administered regulations, providing a solid risk detection basis enabling thorough scrutiny of diverse marketing materials, with minimal customisation required.

Here’s what it delivers:

• User-Friendly Platform for Compliance Professionals
  The platform is designed for compliance professionals to upload marketing materials for thorough reviews against regulations. Utilizing AI and automation, the interface is intuitive—much like using a familiar app—allowing documents to be analyzed in minutes. All flagged risks come with remediation advice, making decision-making quicker and more informed.

• Accelerates Marketing Compliance
  Rule Libraries accelerate and enhance marketing compliance review processes, minimizing time commitments from your team. This systematic approach ensures baseline risk detection across the organization, reducing reliance on individual compliance knowledge, manual risk identification and promotes consistency.

Rule Library and Regulatory Alignment
Referencing key EU guidelines, our Rule Library offers comprehensive coverage, streamlining risk identification through automation. This solution not only enhances efficiency but also shows regulators that your organization is conscientious and committed to complying with crucial regulations.

Example Rule Library coverage:

MiFID II

• MiFID II Directive Art 24
• MiFID II Delegated Regulation (Commission Delegated Regulation 2017/565), Chapter 3, Sections 1 and 2.

The SFDR

• Regulation (EU) 2019/2088 on  sustainability-related disclosure in the financial services sector
• Regulation (EU) 2020/852, Articles 3, 5, 6 and 9

   

Other ESMA-administered regulations:

• ESMA Guidelines on marketing communications under the Regulation on cross-border distribution of funds.
• CBDF Regulation (Regulation (EU) 2019/1156) Art 4.
• UCITS Directive (Directive 2009/65/EC) Arts 63(4) and 77.
• Market Abuse Directive (Regulation 596/2014) Art 20(1) as implemented by Commission Delegated Regulation 2016/958 Arts 2-6.6

What the Rule Library provides

Efficient Implementation

• Enhance existing workflows and experience expedited implementation timing with foundational risk identification rules. This is like having a pre-built foundation for a house, allowing you to quickly build on it rather than starting from scratch. 

Enhance Existing Workflows

• Modify or create scalable review processes.

Centralize Compliance Policies

• Keep internal marketing compliance policies and guidelines organized.

Tailored Risk Detection

• Customize the foundational library rules to meet your specific needs. This ensures that your risk detection process is as unique as your organization.

Add Custom Rules

• Tailor your compliance checks to address emerging compliance and legal priorities.
  

Collaborative Rule Development

• Before introducing new rules or amending existing ones, IntelligenceBank collaborates with power users and decision-makers in customer organization
• Ensure changes align with customers’ internal policies and processes.

Continuous Monitoring and Evolution

• We monitor the environment through legislative alerts, regulator announcements, industry news, horizon scanning, and usage data.
• The library evolves based on emerging best practices, new expectations, and technology advancements to reduce user effort.
  

Company-Specific Policies

• Once IntelligenceBank handles the basics, you collaborate to implement company-specific policies and protections unique to your organization.

Comprehensive Oversight

• Receive automatic email notifications for reviews.
• Benefit from a comprehensive audit trail ensuring full compliance.

Consultation and Support

• Leverage our implementation team for consultation on the best approach for your organization’s needs.
• Work collaboratively with IntelligenceBank staff to align changes with internal policies and processes.

See How Rule Libraries Work

The EU Asset Management Library streamlines risk identification in marketing materials, reducing workloads. Developed in collaboration with our clients, leading global asset managers in the UK and EU, it consolidates essential rules for marketing reviews in this sector, ensuring consistency and compliance with regulatory obligations with the benefits of automated processes.

If you would like to learn more about this Rule Library, or any libraries in our collection contact us to book a demo.