Re-imagining compliance and controls for asset managers and their portfolios
Updated: Jun 6, 2021
“Prevention is better than cure.”
― Dutch philosopher Desiderius Erasmus in around 1500
We believe that a truly great compliance and control platform has the following features:
1. It is holistic (covers all areas);
2. It is dynamic (provides real time visibility and control);
3. Saves time and effort; and,
4. Helps preserve portfolio value on exit.
A holistic compliance tracker is one that can capture all ongoing compliance obligations across an asset manager’s investment structures – be it tax, accounting, regulatory or others. It doesn’t matter where your SPVs are located and how many different types of filing obligations they have, a holistic compliance tracker must be able to track them all.
Dynamic and event based
Most compliance tools tend to be static and narrow in focus. A truly great one tracks events in investments structures and flags all the necessary compliance obligations that arise as a result. Here are a few examples of what a dynamic compliance tracker should be able to do:
If a company in your structure issued additional equity or debt, it can flag the necessary tax, legal, and regulatory obligations that arise as a result.
If there is a change in your lenders, flag the necessary withholding tax obligations that arise as a result.
Track the board composition of the companies in a structure and flag the necessary obligations that arise as a result of change in the board – e.g. regulatory filings, tax residency risk etc.
If you make an add-on acquisition that gives rise to a number of contractual obligations in the SPA, it should be able to help you track and manage these obligations easily.
If companies in your structures are liquidated or sold, automatically flag the necessary filing obligations and update your investment structure chart.
Broadly, a dynamic compliance tracker is one that is flexible enough to be programmed to track all the events in your investment structures and flag obligations.
Save time and effort
A great compliance tracker should save you time and effort, not add to it. In order to do this, it must have the following features:
Give you real time visibility and control such that you know where the gaps are and can close them out as they arise.
Give role based access to your service providers so that they can monitor events in your structures and make you aware of risks as they arise.
Act as an intelligent repository of all your compliance filings that is easily accessible both during the life of an investment and also during a due diligence exercise on exit.
Help keep your portfolios transaction ready
A truly great compliance tracker helps you track and manage risks as they arise, keeps your portfolios transaction ready, and preserves value on exit.
At DealsPlus we are re-imagining the way compliance and controls work for asset managers and their portfolios. Our ambition is to deliver a platform that maximises value for asset managers.