Investment guideline monitoring

Investment guideline monitoring covers the whole chain: interpreting guidelines, coding them as rules, testing, monitoring pre-trade and post-trade, escalating breaches and reporting. UK asset managers often have a team named for it. It covers client, prospectus, regulatory and internal restrictions alike.

Trustees in England and Wales who delegate asset management must keep the arrangement under review (Trustee Act 2000 s22). That includes assessing whether their policy statement is being complied with. Charity Commission guidance asks trustees to consider whether the manager is complying with the investment policy.

Monitoring can sit with the manager, an outsourced provider or the asset owner’s own tool. In Acclimetry, rules link to the exact source passage, monitoring runs produce immutable results, and continuing breaches become cases with owners and service-level clocks. See in-house or outsourced monitoring.