Innovation to guarantee the best regulatory standards
With the entry into force of the LSFin and LEFin laws on 1 January 2020, banks and independent asset managers have had to cope with the increasing number and complexity of regulations. The Wecan Complya platform was developed with the aim of simplifying the hundreds of daily interactions between banks and independent asset managers, reducing the workload associated with all compliance processes and sharing information in real time. “Optimising its resources to achieve its objective. Our industry must reinvent itself, Wecan Comply is part of this change by offering a disruptive solution within the reach of all independent asset managers. ” says Alain Zell, Managing Partner & CEO at Capitalium Advisors who has joined the platform. Whether it is for independent asset managers or custodian banks, the solution has been able to seduce by the innovation it offers in the face of current regulatory standards. “For Banque REYL & Cie, being a simple banker is not enough. We strive to be a true partner by offering innovative solutions, and that’s why the Wecan Comply solution seems extremely relevant to us,” comments Stephan Aepli, Head of External Asset Managers at Reyl & Cie.
The project was built in close collaboration with a dozen Swiss banking institutions and around fifty independent asset managers in order to best address their needs. “At Pictet, the inclusion of technology in our services is one of the major thrusts of our strategy. We believe that the acceleration of digital progress will transform our industry and our client relationships. Data literacy using these technologies will facilitate the way information is shared,” says Cédric Haenni, COO, Pictet Asset Services. “With recent regulatory changes, Pictet has identified an opportunity for digitalisation in onboarding and relationship management with independent asset managers. The latter are currently facing a duplication of work on compliance-related information with all their custodian banks. Wecan Comply, with the creation of a shareable standard for data collection, helps to overcome this problem by guaranteeing real-time compliance. “
Simplifying trade through technology
Today, compliance documents are stored by banks in a heterogeneous way. Each entity uses its own tools and standards. The exchange between platforms is impossible and the updating of data is complex. The pooling of resources, the simplification of information sharing and the quality of this data are key issues in regulatory issues. “The pooling of resources, the simplification of information sharing and the quality of this data are key issues in the face of constantly changing regulations,” explains Michel Longhini, head of Private Banking at Edmond de Rothschild. “Wecan Comply responds effectively to this challenge. Independent asset managers are a very important segment for Edmond de Rothschild. Thanks to distributed register technology, exchanges with them are more agile and fluid throughout the process. The savings in time and resources are obvious and we are delighted to join, along with other founding banks, this truly innovative project which guarantees the security of exchanges and compliance with the highest regulatory standards. »
The solution enables cost savings of between 35 and 60% for banks and asset managers on compliance management. “At Pleion, we have been innovating for our clients for 40 years. It is obvious that new solutions like WecanComply are transforming our industry and it is logical that we are part of it” says Patrick Humbert-Verri, Pleion SA.
The future of compliance
Considered as the second digital revolution after the Internet, blockchain technology is increasingly becoming a reality with applications. This is particularly the case in the financial sector, which is experiencing a strong acceleration of digitalisation. “Collaboration between start-ups and well-established banking institutions makes it possible to find lasting solutions to the challenges of the industry. This platform, the result of collaborative work, illustrates the know-how of our financial centre and its agility in order to strengthen its position as a leading wealth management centre. Lombard Odier, which has developed its proprietary technology platform, has always made innovation a strategic priority in order to improve efficiency and provide its clients with high value-added service. The Wecan Comply project is part of this continuity. This service innovator will make our customers’ daily lives easier by reducing their operational work while allowing secure information sharing between stakeholders. “concludes Laurent Pellet – Global Head of External AssetManagers, Lombard Odier.
The sharing of structured information between custodian banks and independent asset managers is the first step in an ambitious project. “The Alliance is delighted to join such an innovative project. We see it as a positive contribution to modernising the image of our industry”, says Nicole Curti, member of the Board of Directors of the Alliance of Swiss Asset Managers. The union of financial players within a network with an international vocation offers very pleasing prospects for development, with significant potential for efficiency gains. The participants in the project are already planning the other services that could be launched on the platform as early as 2021. “We are delighted with our collaboration with Wecan Group, and more specifically with our participation in the development of the Wecan Comply project. We share the vision of the potential for the diffusion of Blockchain technology in the different areas of activity of the banking sector. The optimisation of the use and sharing of data in a secure and non-centralised manner is becoming essential, given their exponential growth. The success of the creation of a platform based on Blockchain as a standard for on-boarding and monitoring of third party managers is very encouraging and we look forward to accompanying Wecan Group in its many future projects. “concludes Stephan Lawi, Head of Research and Investments, Hyposwiss.