COMPLIANCE & SUPERVISION BY NEXUS

What is Nexus?

The Nexus platform is a highly configurable web application that allows consolidation of multiple technology vendors into one solution. Whether you’re a BD or RIA, Nexus offers a perfect balance between providing regulatory compliance and supplying the majority of basic operational tools required by individual advisors and for your firm to advance your book of business, all while retaining the ability to accommodate the differences encountered from firm to firm and advisor to advisor.

Common Difficulties for BDs & RIAs

Compliance and Supervision represents a massive and complex swathe of difficulties common to all BDs, RIAs, and hybrids but there are some underlying themes. It can be very difficult to manage the broad expanse of documentation requirements even when systems and procedures foster a high level detection and awareness of issues. Most often compliance personnel are in an endless loop of suffering where disjointed systems do not communicate with each other and each individual system only contributes to a small piece of the overall compliance effort. Generally the only way to address the challenges is through additional personnel performing additional manual processes culminating in additional time and expense.

How Nexus Can Help

Through an innovative approach to software specifically written for BDs and RIAs, Nexus provides a single platform where data from all sources relevant to a firm is aggregated and normalized. Rules based engines are brought to bear on the normalized data and provide robust ability to detect a wide and ever-growing range of compliance matters. An extremely flexible workflow management system is overlaid on top of the entire set of normalized data and the rule engines which provides an ideal and unified environment to generate documentation and evidence of WSP related activities. 

Key Capabilities

• Trade Blotter for timely review of daily transactions including virtually unlimited exception generations based on the firm’s own unique circumstances and approach to risk management.

• A holistic “Compliance Blotter” which actively reports any new or ongoing issues with existing accounts or advisors.

• Reverse churning or excessive trading, performance/risk tolerance mismatches, concentration checks, alternative mutual funds/leveraged holdings/crypto/interval fund detection, uninvested cash are just some of the types of exceptions that can be raised and require attention.

• Custodian Agnostic: Many data feeds from many custodians are supported so whatever mixture of custodians in use by the firm can all be presented and a comprehensive compliance/supervision strategy can be enacted on all of it in a unified way.

• Books and Records database including account opening and account updates. Address change letters, suitability change letters, welcome letters, 36 month update letters can all be generated by Nexus which supports emailing letters to clients or printable letters for paper envelopes.

• Reg BI questionnaires and reviews are supported.

• Direct business including insurance as reported from DST FANMail and NSCC/DTCC is supported and becomes part of the unified view alongside data from traditional custodians.

• Check blotter, Securities blotter, Signature blotter, and any number of custom blotters designed by the firm are available.

• Includes document management by default. Using a pre-existing document management system is also possible.

• FINRA Renewals processing to make the task of annual license renewals far simpler.

Additional Capabilities

• Daily OFAC and FinCEN checking on the books and records database.

• Support for pre-approved orders for insurance or alternative investments.

• Front-running report available when Nexus is provided the transactional activity of advisors and associated personnel.

• Automatic generation of workflow items with robust routing capabilities so many routine quarterly, monthly, annual processes described in WSPs are not forgotten and provide all the tracking and notifications needed to ensure they get completed.

• Numerous reports designed to assist with surfacing information during an SEC, FINRA, or state audit. New and unusual data requests from regulatory agencies not covered by existing reports can be requested. Frequently an ad-hoc audit data request to Softek can save many hours of labor intensive effort to fulfill audit demands.