Toronto, June 03, 2013 – Portfolio Aid Inc. is pleased to announce new functionality added to its flagship solution, PortfolioAid360°, enabling its clients to conduct client level suitability assessments. Until now, PortfolioAid has performed suitability assessments at the account level only. However, in response to client interest and updated regulatory guidance from IIROC & the MFDA, client level suitability is available for those firms that prefer a more holistic approach to managing risk tolerance and investment objectives across multiple accounts that make up a client’s portfolio.
Per IIROC Rule 1300 (for Managed Accounts),
A “review may be conducted at an aggregate level for managed accounts for which key investment decisions are made centrally and applied across a number of managed accounts,”
Per MFDA rule book MR-0069 (Paragraph 1-H),
“Where a Member wants to use one set of risk tolerance, time horizon, and investment objectives for multiple accounts within the firm and assess suitability on a consolidated basis, the Member would have to demonstrate that:
- The client has agreed that the KYC information relates to all the accounts specifically listed on the KYC form and the combined portfolio in these accounts will be reviewed when assessing suitability.
- The beneficial owners are the same for all the accounts.”
What can PortfolioAid360° do?
If your firm offers managed accounts and / or chooses to perform suitability assessments at the client level, PortfolioAid360° can:
- Assess accounts on a consolidated basis, providing a rolled-up report with all the relevant information as provided in the familiar PorfolioAid360° suitability report.
- Flag positions that result in the risk tolerance or investment objectives of the combined accounts being exceeded.
- Separate accounts previously aggregated if one of the account’s KYC information changes.
- Send reports to designated supervisors to ensure streamlined workflow.
It is PortfolioAid’s speculation that IIROC & the MFDA will allow for broader client level suitability assessment practices in the future and we feel well positioned to support these changes.
PortfolioAid’s intelligent compliance tools help dealers manage the increasing regulatory workload. Through the use of firm-wide risk assessment standards, suitability reporting, inquiry management, alerting, and escalation, PortfolioAid offers its clients a unique opportunity to streamline operations.
Founded in 2001 and headquartered in Toronto, PortfolioAid provides intelligent compliance solutions to retail brokerage, wealth management, mutual fund dealers, and the regulatory bodies that govern them. Leading firms have come to rely on PortfolioAid to help increase productivity, save time, and mitigate monetary and reputational risk.