Navigating Compliance in Asset Management

Regulatory compliance is the silent backbone of every investment decision. Whether you manage a single‑strategy hedge fund or a multi‑asset pension mandate, every order must clear a thicket of global rules before, during, and long after it hits the market. 

To demystify this process, Acclimetry’s Asset Manager Compliance Workflow provides an interactive, end‑to‑end visualisation of the pre‑trade checks that stop forbidden orders at source, the post‑trade controls that confirm the portfolio is still clean, and the ongoing position‑lifecycle monitoring that catches breaches that materialise months later.

This article explains the concepts behind each stage and shows you exactly how to explore them in the tool.

Link to the tool: https://complianceworkflowguide.acclimetry.com/

Navigating Compliance in Asset Management

1. Why Compliance Matters

  • Regulations are everywhere. From the SEC’s 1940 Act diversification tests to MiFID II’s best‑execution records, rule sets overlap and evolve.

     

  • Clients have bespoke mandates. ESG exclusions, sector caps, single‑issuer limits and more are layered on top of regulations.

     

  • Breaches are expensive. Fines, reputational damage, and forced liquidations can erase performance alpha.

     

The workflows you are about to explore model the operational safeguards asset managers deploy to stay on the right side of all three pressures.

 

2. Pre‑Trade Compliance

 

Conceptual Highlights

  1. Investment Strategy Definition – Translate a client’s objectives into asset‑class targets and risk tolerances.

     

  2. Rule Configuration – Encode regulatory, client‑specific and internal rules in the Order Management System (OMS).

     

  3. Order Creation – Portfolio managers express their investment ideas as trade tickets.

     

  4. Automated Pre‑Trade Check – The OMS flags hard (blocking) and soft (alert‑only) breaches before execution.

     

  5. Resolution & Approval – Violations are either fixed or approved as exceptions, then sent to the Street.

     

How to Explore in the Tool

  1. Open the default / page or click “Pre‑Trade Compliance” in the tab strip.

     

  2. Hover over any node in the diagram to see the connections glow.

     

  3. Click a node to open a modal with a plain‑English explanation, common data inputs and practical examples.

     

  4. Scroll down to the step cards for a dashboard‑style overview; click “View Details” on any card for a deeper dive.

     

  5. For a narrated experience, visit /interactive and select Pre‑Trade. Press Next to walk through a realistic scenario complete with system alerts and remediation actions.

     

Tip: Resolve all soft and hard breaches in the interactive flow to unlock the Approve & Execute button.

3. Post‑Trade Compliance

 

Conceptual Highlights

  1. Trade Execution Capture – Market fills are imported with price, quantity and timestamp.

     

  2. Post‑Trade Check – The portfolio is re‑tested against every rule using actual fills and current positions.

     

  3. Breach Management – Any new exceptions are documented; remediation plans are kicked off.

     

  4. Regulatory & Client Reporting – Audit‑ready logs and summary dashboards are produced.

     

 

How to Explore in the Tool

  1. Choose the “Post‑Trade Compliance” tab on the main page – the diagram illustrates the loop back into compliance.

     

  2. In /interactive, switch the toggle to Post‑Trade. Run the compliance check, manage a breach, and generate reports.

     

  3. Watch the progress bar update as each stage completes, mirroring a real operations console.

     

 

4. Position‑Lifecycle Monitoring

Even a perfectly compliant trade can become non‑compliant as markets move, companies merge, or the portfolio is rebalanced.

 

Key Triggers Modelled

  • Market Movements – Sector drift, FX swings, derivative deltas.

     

  • Corporate Actions – Mergers, spin‑offs, stock splits that change issuer exposure.

     

  • Portfolio Rebalancing – Temporary breaches when cash spikes or positions cross limits mid‑process.

     

 

How to Explore in the Tool

  1. Click the “Position Lifecycle” tab or navigate directly to /lifecycle.

     

  2. Use the nested tabs (Market Movements | Corporate Actions | Portfolio Rebalancing).

     

  3. Hit Simulate to watch real‑time progress bars and breach alerts fire.

     

  4. Press Initiate Remediation or Document Exception to close the loop and generate an audit trail.

     

5. Interactive Mode vs. Diagram Mode

Mode

Best For

Where to Find

Diagram

Quick orientation, teaching cohorts

Default tabs on /

Step Cards

Self‑paced reading, reference

Scroll below each diagram

Interactive Workflow

Training, workshops, demos

/interactive

 

6. Use‑Case Ideas

  • Onboarding new analysts – run through the interactive scenario on Day 1.

     

  • Client due‑diligence – show prospects your control environment live.

     

  • Audit dry‑run – document how each type of breach is captured and closed.

     

  • Process engineering – identify manual hand‑offs that can be automated.

 

 

7. Final Thoughts

Compliance is not a single checkpoint but a continuous feedback loop spanning idea generation to the last penny of residual value. By visualising that loop, Acclimetry turns abstract obligations into tangible, teachable flows. We hope the tool equips you to spot gaps, refine processes, and above all, trade with confidence.

Questions or feedback? Send us a message from: https://acclimetry.com/contact/