Better Manage Material Non-Public Information and Conflicts

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When working with sensitive data like material non-public information (MNPI), you must be able to store this information in the most secure manner possible. These private, complex transactions — including M&A, equity, and debt deals — can expose unauthorized individuals within a firm to MNPI if the appropriate safeguards aren’t in place. Dealmakers must assure clients at both large and small financial institutions that their confidential data is safe within their firm, and that the firm will appropriately monitor potential conflicts of interest.

 

Manual checks and balances no longer provide a sense of security for clients with mission-critical private data. If capital market firms want to retain these clients, they’ll need software that can keep up with the ongoing increase of regulatory scrutiny and deal flow. An automated, integrated solution like DealCloud — the financial services pipeline management software purpose-built by capital markets industry professionals — can provide the assurances you and your clients seek.

 

DealCloud streamlines the flow of MNPI within your firm, ensuring only individuals with proper permission can access sensitive information. Officers can view access attempts and gain increased transparency into the security of the data. Additionally, administrators can differentiate information barriers between private-side and public-side data, including sales, trading, and research. By having these clear barriers in place, firms ensure that public-side employees can’t view MNPI, and therefore reduce the risk of potential conflicts.

 

To provide additional safeguards against the misuse of MNPI, DealCloud Conflicts users can add securities to a watchlist or graylist that integrates with your personal ethics solution to allow effective surveillance and limitations on stocks that employees can trade. These safeguards help firms mitigate potential conflicts of interest and ensure compliance with legal and regulatory governance.

 

DealCloud Conflicts can also protect capital markets firms from potential conflicts of interest by monitoring crucial information, including:

  • Prior and current firm engagements with clients that could result in externally conflicting deals
  • Engagements with various roles within a firm that could result in an internal conflict
  • Employee personal holdings, trading, and outside business interests

 

With DealCloud Conflicts, firms can seamlessly integrate front office deal management platforms with deal and pipeline management solutions to gain real-time information on transactions and unlock new analytics in a fully automated, auditable solution.

 

Ready to explore how DealCloud Conflicts can help you manage risk and protect material non-public information? Schedule a demo today.

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Author:

Amanda Tooker

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