In modern business, information flows like a river and is as important as water. Especially, in the Capital markets space, the threat of insider trading casts a formidable shadow and remains one of the biggest targets for regulators and the courts. As organisations strive to maintain ethical standards and fortify their foundations, the integration of a robust insider trading prevention system becomes a strategic imperative. However, getting a large workforce attuned to using these systems requires much more than just a well-thought out and intelligently designed system.
This blog unravels the essential aspects surrounding insider trading management systems that promote usage and compliance with ease. Weaving and embedding an application within the organizational structure requires significant forethought accompanied by design and technology chops.. Removing every minor and major irritant or blockage is key to regular and seamless compliance – be it technical, infrastructural, functional, operational or technological.
The Need for Integration
Standalone systems are just not good enough today; integration with existing organisational structures enhances efficiency and ensures a cohesive strategy. Imagine dealing with a multiplicity of systems, each with their own dependencies, usage norms, structures, access, security, credentials, interfaces and accommodations. It is an exhausting aspect not just for end-users but for technology teams as well.
Insider Trading Management – Integration with HRMS System
The HRMS is the heart of an organisation’s personnel management. Every change in employee, joining and leaving dates, departments, functions, seniority, supervisor, etc is placed there as the gold source. At the same time, much of employee personal data, to the extent needed by the organisation for compliance is stored there too. It is an incredible waste of time and resources (not to mention error prone) having to replicate all this data for Insider Trading Compliance Management. For the same reason, deep integration is also risky. However, much of this data remains needed nonetheless for management of insider trading.
Insider Trading Compliance Management systems like Affinis provide secure app-based integration which can constantly sync with the HRMS systems to provide the latest and most updated data at all times. This integration facilitates real-time updates, ensuring that the system is always aligned with the current organisational structure, approval matrices, employee roles information exposure and, to the extent required, their personal data like PAN. At the same time, the systems can also be used to streamline the process of granting and revoking access based on employee roles and responsibilities.
Imagine having to replicate the details of each employee appointment, resignation, elevation, retiral, role change or supervisory change on a daily basis into the Insider Trading Compliance Management system. The massive duplication of effort alone pays for more than the system can be procured for. The avoidance of errors, itself a significant benefit, is a bonus.
Can Single Sign-Ons help?
Implementing single sign-ons (SSO) is a key component of integrating an insider trading prevention system. SSO not only simplifies the user experience but also strengthens security. Employees can seamlessly access the system using their existing credentials, reducing the risk of unauthorised access. Additional two-factor-authorizations seamlessly become part of the sign-on security as well. This integration also centralises authentication, making it easier to monitor and control user access, an essential aspect of information management. Access certifications can similarly be done centrally, and deletion of the single access point enables deletion of access to the system as well, a significant comfort when it comes to systems with sensitive information.
Seamless Integration of Personal Account Trading with Email Systems
Email communication plays a pivotal role in daily business operations. Integrating the insider trading prevention system with email systems enables organisations and users to maintain their interactions with their favoured email clients and email services, which themselves remain under organisational control. From auto-capturing emails to capturing data within emails where necessitated, there is a significant benefit to having an insider trading compliance management system that merges seamlessly with your mail infrastructure. What’s more, the element of review and approvals, which plays a significant role in Insider Trading Compliances, is greatly enhanced by the ability to action things like approvals or rejections from within the email body itself.
Browser-Based Access for Designated Person’s Compliances
Imagine having to deploy an application machine-by-machine using exe files. And don’t even get us started on what happens if you use a Mac. Centrally deployed applications that can be accessed over default browsers significantly reduce the pain, cost and risk associated with deployment and usage of systems meant for prevention of Insider Trading compliance risks.
Personal Account Trading Device Access by Employees
In the world of remote, hybrid or anywhere work where UPSI can be exposed anywhere at any time, imagine having to open your laptop to do any and every single action related to Insider Trading compliances. Applications that can just as easily be accessible on your hand-held device like cell phone or tablet provide significant convenience and risk reduction. It is these minor enablements that lead to significant gains (or prevent significant losses) in the mid to long term.
Insider Trading Compliance – Integration With Business Applications
Microsoft applications like MS Excel, MS Word and MS Outlook are woven into the fabric of many organizations. So much so that many of us espouse the use of the brand names instead of the generic underlying descriptors (like spreadsheeting, word processing or email client). Integration with these applications, or at least, with file types supported by these applications, is critical. Imagine having to upload data of holdings or flow of UPSI and not being able to do it in an Excel or CSV file.
In the ever-evolving landscape of corporate regulations and responsibility, the fight against insider trading demands not only vigilance but a harmonized integration into the very fabric of organizational existence. Systems like Affinis go the farthest by seamlessly integrating with HRMS, enabling single sign-ons, deep integrating with email systems, browser based access, hand-held access and support for all common business applications, organizations can fortify their defenses and compliances while removing the massive operational effort and cost associated with fractured systems. As businesses evolve, so too must their strategies for preventing insider trading – an integrated approach ensures they stay one step ahead.