SOURCE: Vestmark, Inc.

Vestmark, Inc.

April 24, 2012 14:00 ET

Vestmark Introduces Comprehensive Compliance Solutions for Fee-Based Accounts

WAKEFIELD, MA--(Marketwire - Apr 24, 2012) - Vestmark, a leading innovator of advisory solutions and wealth management technology, announced today the introduction of comprehensive compliance solutions for fee-based accounts within VestmarkONE. These compliance capabilities span pre-trade compliance, post-trade compliance, enforcement of client-specific restrictions and guardrails across discretionary and non-discretionary advisory programs.

VestmarkONE's scalable compliance engine evaluates a broad range of compliance rules and client restrictions in real-time on a pre-trade basis to avoid costly errors and unintended trades before they ever happen. VestmarkONE also includes detailed audit trails to confirm adherence to all compliance policies and rules, and ongoing monitoring of compliance rules on a post-trade basis.

"Due to unique scalability and functionality requirements, broker-dealers, banks, RIAs and other wealth managers have had limited compliance capabilities across their fee-based business lines," said Rob Klapprodt, President of Vestmark. "With the fee-based compliance solutions of VestmarkONE, firms can confidently grow their fee-based advisory business without unnecessarily increasing operating risk."

VestmarkONE provides a flexible compliance rule builder to construct a wide range of rules at the firm-level, the program-level, the product-level, and for client investment policy statements. These rules can be defined against specific securities, security characteristics (e.g., bond ratings), sectors and other groupings of securities, as well as portfolio diversification and concentration requirements. As a result, VestmarkONE offers:

  • Pre-Trade Compliance and Restriction Evaluation - All compliance rules are evaluated on a real-time, pre-trade basis to reduce trading errors and the associated cost and effort of correcting violations.
  • Post-Trade Compliance Monitoring & Alerting - All rules are evaluated on a post-trade basis each and every night and on-demand for all fee-based accounts.
  • "Guardrails" for Advisor as Portfolio Manager - specific constraints can be defined and enforced for advisor-directed programs including which advisors can and cannot participate in such programs, eligible securities, and diversification requirements
  • Management of Client Restrictions - client-specific restrictions can be defined and enforced on VestmarkONE. Restrictions are evaluated prior to any trade and proactive alerts are available post-trade for any violations or changes (e.g., a held security added to a socially responsible investment restriction list)
  • Model Portfolio Compliance Checks - each model portfolio defined by financial advisors, central investment teams and third party specialists can have its own set of compliance and investment requirements. These rules are evaluated with each model update, and model changes can be subject to firm-defined approval workflows.
  • Centralized Monitoring and Alerting for the Home Office - VestmarkONE's Compliance Dashboard provides program-wide alerts and streamlined identification of accounts and situations which require attention.
  • OATS Data Capture - VestmarkONE includes detailed audit trails for every change on the system and all actions taken throughout the trade process. For non-discretionary accounts, VestmarkONE has a built-in workflow prompting advisors to gain client consent and meets the OATS data capture requirements. The system also maintains historical versions of accounts, compliance rules, portfolio models, and other objects and tracks changes and approvals.
  • SEC-compliant trade recordkeeping - VestmarkONE constructs comprehensive audit trails to verify observance of all compliance policies and rules, maintaining SEC-compliant trade records.

About Vestmark
Vestmark provides VestmarkONE, a unified wealth management platform offering comprehensive, real time technology that enables Broker-Dealers, investment managers, RIAs, bank trusts, and other financial firms to deliver holistic wealth management and a full range of advisory solutions. Vestmark's experienced team works closely with clients to implement tailored solutions incorporating best practices that help firms gather more assets, increase efficiencies and minimize operating risks. For more information about Vestmark's solutions, please call 781-224-3640, email or visit

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