UC-398
Mandate Rule Encoding & Breach Triage
Reads each mandate and prospectus, turns the restrictions into testable rules and triages every breach with its cause and clause.
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The Challenge
A new mandate takes weeks to encode into the compliance engine while managers trade against it in the meantime. Restrictions are written in prose, differ per client and change with every side letter.
How It Works
- Reads investment management agreements, prospectuses, side letters and regulatory limit sets.
- Turns each restriction into a testable rule and maps breaches to cause, drift or instruction.
- Gives compliance a triaged breach list and gives the manager the clause that was breached.
What It Removes
- Hand-coding mandate restrictions into the rule engine
- Re-reading the IMA to classify a passive breach
- Chasing the manager for the reason behind a breach
Input Data RequirementsInvestment management agreements, prospectuses, side letters, UCITS and regulatory limit sets, holdings and trade files, historical breach records
Output FormatEncoded rule set per mandate with a coverage gap list, plus a triaged daily breach queue showing cause, the clause breached and a suggested remedy
“Onboarding a mandate takes six weeks of a compliance analyst reading a contract and typing rules into a screen.”