• Intapp Employee Compliance

Reduce risk and improve speed with automated trade pre-clearance

It’s common for employees at financial services firms to trade stocks for personal investment purposes. However, ensuring that employees’ trades are compliant with internal policies and regulatory requirements can be a complex and
time-consuming process.

At many firms, employee trade pre-clearance is still a resource-intensive affair requiring manual verification, paperwork, and coordination with compliance officers. The result: increased compliance risk and lost productivity.

That’s because, like any manual process, it’s subject to human error — information may be miskeyed, misinterpreted, or accidentally overlooked. The lack of real-time monitoring also makes it difficult to identify potential regulatory issues as they arise. Not to mention, slow approvals can cause employees to miss out on time-sensitive trading opportunities.

Below we explore how your firm can issue timely approvals and reduce compliance risk with technology that automates the employee trade pre-clearance process. We’ll also share what to look for when selecting a technology solution.

Ensure fast, compliant trade

Employee trade pre-clearance doesn’t have to be a lengthy process. Technology solutions that automate trade
pre-clearance, such as Intapp Employee Compliance, make it faster and easier for your firm to approve employee trades while adhering to compliance requirements. These solutions provide numerous benefits:

  • Accelerated approval processes: Automating the employee trade pre-clearance workflow accelerates the processing time for trading requests — saving compliance officers time and enabling employees to take advantage of favorable market conditions.
  • Increased productivity: Replacing tedious manual processes with automation lets compliance officers and other employees focus their efforts on strategic priorities.
  • Reduced compliance risk: Real-time monitoring helps firms ensure consistent enforcement of internal policies and external regulatory requirements, while alerts about potential violations help compliance officers address issues quickly.
  • Enhanced accuracy and reliability: Automation supports an accurate, reliable pre-clearance process that minimizes oversights, miscalculations, and misinterpretation of trading activities.

Improve ease, speed, and accuracy with solutions built to meet your firm’s needs

While choosing the right employee pre-trade clearance solution might feel daunting at first, you can narrow the field by refining your search to solutions with these critical features:

  • Configurability: Adapt quickly to policy and regulatory changes with a system that can be easily tailored to align with your firm’s specific compliance requirements, rules, and policies.
  • Comprehensive reporting: Simplify internal audits and support regulatory compliance with an auditable system of record of all employee trading activity.
  • An intuitive interface: Make it easier for employees to submit trade approval requests — and for compliance officers to manage them — with personalized dashboards and role-based reports that highlight outstanding tasks and potential compliance concerns.

Gain a competitive advantage

Relying on manual processes to ensure that employee stock trades comply with internal policies and regulatory requirements is inefficient and risky. With competition getting tougher and regulations increasing in complexity, it’s also becoming unsustainable.

Automating trade pre-clearance not only improves employee satisfaction by accelerating approvals — it also increases productivity, reduces compliance risk, and enables you to operate efficiently in a market where every advantage counts.

Schedule a demo of Intapp Employee Compliance today to learn more about what automating trade
pre-clearance can do for your firm.