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Reduce Your Risk to Segregation Deficits

Reduce Your Risk to Segregation Deficits
  • Firms lack automated systems to manage firm-wide deficit/violation analysis
  • Lack of governance/verifiability of deficit/potential violation creation
  • Aged Deficits and Possession or Control violations have reputational and financial risk
  • No causal analysis or insight into problem identification and resolution
  • Many firms currently have manual and inefficient process

THE CURRENT TREND

Firms are facing more complexity and uncertainty than ever before, including the growing risk of not being able to calculate and manage deficits of shares on a timely basis.

Some firms deal with Segregation Deficits using manual processes (e.g., shared spreadsheet technology) among multiple departments. Such manual processes and inefficient workflows often create bottlenecks and accompanying time delays as only one person at a time can work on an item before sending it on to the next person for further processing.

Manual processes are also prone to human error as the number of touchpoints increases. Further, there may be insufficient or no archival or audit trail to provide to auditors and regulators (FINRA) for validation purposes.

LEVERAGING TECHNOLOGY TO MEET THE CHALLENGE

Adding efficiency to operations, accelerating the adoption of new technologies, and responding to business conditions is critical. Broadridge’s Ascendis Segregation Deficits application is an alternative to the costly resource and expense-draining manual process or an in-house developed program.

Ascendis Segregation Deficits helps brokerage firms identify potential Possession or Control Violations and Age Deficits. This solution helps firms handle the complexity, management and proper maintenance / oversight of all firm-wide deficits and potential SEC 15c3-3 violations through a single web-based platform.

Firms establish their own business rules for routing and assignment of cases, and the aging/prioritization of cases to facilitate action on the highest priority cases first.

Once assigned, cases are accessible to multiple parties and can be worked on simultaneously. All the information needed to work the case is provided within the application; eliminating the need to view other applications or screens. The application highlights potential segregation violations vs. normal cause for business deficits.

Deficit cases are aged by calendar or business day to accurately monitor when an aged deficit becomes actionable and needs to be closed out. Ascendis Segregation Deficits tracks the allocation of deficits, allowing the firm to act in the proper timeframe. Cases are automatically closed when deficits are resolved; and a complete, non-editable audit trail of actions for each case is produced.

CHOOSE BROADRIDGE

Clients need tools to turn disruption into opportunities— enriching client engagement, navigating risk, optimizing operations and growing revenue, and meet the needs of today and tomorrow. We help them make decisions that create this transformation.

For additional information, please contact your Broadridge Account Manager or learn more about our solution.

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