The surveillance system monitors the activities of advisors to detect errant trades. The system tracks the sales and redemption of assets across insurance providers and custodian financial institutions.
With this system in place, Financial Institutions are able to monitor activities more closely and are able to comply with the regulatory requirements of the authorities to prevent errant trades.
This simplifies the administrative effort to monitor, detect and prevent errant trades with minimal interruption to trading processes and minimal manpower required for supervision roles. Effectively additional compliance role is being carried out cost efficiently and effectively.
What to monitor?
- Trades i.e buy-sell of insurance within the first year
- Redemption followed by purchase with a view of increasing sales commissions
- Redemption followed by purchase into another trading platform to avoid detection.
- Redemption from one followed by purchase for another family member.
Through these systems, Financial Institutions can avoid costly legal action against themselves.
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