Combat fraud with tamper-proof software

Manulife logoIntelliware safeguards day trading in the mutual fund industry.

The Securities and Exchange Commission (SEC) has a mandate to eliminate abuse and fraudulent market timing activity due to late day trading in the mutual fund industry in the United States. The SEC requires more transparency on the movement of money inside the pension industry. The main issue is that instructions from 401(k) plan participants and plan sponsors are received while the stock markets are open, and they are turned into buy and sell orders after the markets close.

Creating a tamperproof solution to address “late day” trading requires taking a significant number of business operating models into account as well as integrating different record-keeping and administration systems. Any solution under consideration must balance the issues of security, reliability, scalability and impact to stakeholders, and, in the securities industry, it must also meet the rigid standards set by the SEC.

Manulife Financial engaged Intelliware to help define the parameters of an application to manage these diverse and stringent demands. Intelliware created and presented a paper of solution options to a Manulife working committee in Chicago for implementation.