Swiss Firms Turn to Advanced Tools to Mitigate Financial Crime Risk
In the face of intensifying regulatory scrutiny and rising non-compliance penalties, Swiss financial institutions are grappling with spiraling costs associated with ensuring compliance. To navigate this complexity, many firms are adopting scalable trade surveillance frameworks that can adapt to their lean and agile operating models.
Implementing Scalable Trade Surveillance Frameworks
However, implementing and expanding these frameworks across business units in a risk-prioritized manner poses significant challenges. EY’s market abuse surveillance advisors have developed capabilities that help institutions build effective surveillance systems. Our team combines regulatory insight, technological expertise, and product-specific knowledge to provide an innovative and agile approach tailored to each firm’s unique needs.
Collaborative Approach
Our market abuse surveillance team collaborates closely with regulators, technology providers, industry bodies, and market participants to identify opportunities for synchronized surveillance standards in data management, alert detection, and disruptive technology adoption. This collaborative approach enables us to work seamlessly across organizations to:
- Conduct a Comprehensive Health Check: Perform a comprehensive health check on existing trade surveillance ecosystems, providing actionable improvement points
- Granular Risk Assessments: Conduct granular risk assessments to identify areas of material control risk specific to each business and market
- Calibrate Surveillance Parameters: Help firms calibrate their surveillance parameters to reduce data noise and false positives
- Design Advanced Analytical Reporting Tools: Design advanced analytical reporting tools that provide relevant investigative data for surveillance analysts
Managing Market Surveillance Operations
Our team leverages technology, data, and industry insights to offer the following:
Surveillance Toolkit
A culmination of years of successful service experience in market surveillance, technology, and risk data. This tried-and-tested set of tools and accelerators helps reduce time to compliance and equips BAU teams with leading-edge capabilities to detect, monitor, and report suspicious trading activities.
Standardized Risk Assessment
Many firms are enhancing their market abuse risk assessments to improve granularity across client types, product- and service-based risks, employee conflicts of interest, and the complexity and volume of orders and trades. This has been driven by updates to regulatory guidance, including the FCA’s Financial Crime Guide, which now requires firms to consider traditional financial crime risk assessment factors when conducting a review of their market abuse framework.
Health Checks
In response to new regulatory guidance and evolving expectations, many firms are proactively assessing their market abuse policies, procedures, and broader surveillance operating models. Our team has developed a reusable and consistent approach to conducting market surveillance health checks that can be tailored to each firm’s needs, leveraging our experience to deliver an efficient and proven review process. The assessment is centered around the EY surveillance framework and focused on three key activities:
- Design Principles: Identify the design principles of the existing market abuse surveillance system
- Compliance Checklist: Conduct a compliance checklist to ensure that all necessary controls are in place
- Coverage Assessment: Assess the coverage of the existing market abuse surveillance system, including data management and alert detection
Find out more about EY’s next-generation trader surveillance analytics, Odyssey-integrated trader surveillance.