Shinhan ITAS Advances Fund Compliance System Enhancement

[Asia Economy Reporter Haeyoung Kwon] Shinhan iTAS announced on the 1st that it will advance its compliance system to respond to the financial authorities' internal control strengthening issues following the Derivative Linked Fund (DLF) and Lime Asset Management incidents, and to improve the soundness and stability of the fund market.

Shinhan iTAS provides compliance services not only to comprehensive asset management companies, specialized private equity asset management companies, and REITs Asset Management Companies (AMCs) within the capital market, but also to institutional clients such as public institutions like the National Pension Service and insurance companies. Through this service, it separately manages clients' unique information and provides a segmented basic information management tool for operational restrictions, offering customized solutions to clients.

Additionally, experienced compliance professionals effectively control transactions and orders through approximately 1,200 pre-inspection items and 4,560 post-inspection items. Follow-up actions for violations are also more thoroughly implemented, enhancing transparency in the fund market.

Last October, Shinhan iTAS launched the industry's first patented "Intraday Compliance" service, which allows for the determination of violations of fund operation-related regulations during market hours.

Through this system advancement project, Shinhan iTAS plans to provide a service that comprehensively monitors regulatory matters related to fund operations, including laws, terms and conditions, and Financial Supervisory Service model regulations. Starting in the second half of the year, it will also proceed with the "Korean-style Aladdin Compliance & Risk Management System" construction project, utilizing artificial intelligence (AI), deep learning, and reinforcement learning technologies based on big data of global economic changes and the securities market. This is expected to go beyond the simple violation inspection scope of compliance, enabling users to proactively identify and prevent investment risks.

A Shinhan iTAS official stated, "The mutual monitoring role among the front, middle, and back offices of the capital market is becoming increasingly important, and efforts to enhance the stability and trust of the financial market are being strengthened. We will strive to create a safe financial environment through continuous digital transformation and provide differentiated internal control risk management services by securing numerous patents and specialized personnel."

This content was produced with the assistance of AI translation services.