Linedata Services Sa · EURONEXT:LIN
Linedata Services Sa — Linedata — Investor Presentation (May 2020)
20 slides from Linedata Services Sa's investor presentation, May 20, 2020
Slide 1: Compliance Technology: Trends and Innovations
COMPLIANCE TECHNOLOGY: TRENDS AND INNOVATIONS MATT LUFF 20th MAY 2020
Slide 2: Linedata: Empowering Asset Managers with Technology, Services and Data Solutions
LINEDATA EMPOWERING ASSET MANAGERS WITH TECHNOLOGY, SERVICES AND DATA SOLUTIONS 1,300+ people Edinburgh Oxford Riga 200m Seattle Toronto Dublin London Luxembourg revenue Chicago Boston Paris Greenwich Madrid New York Tunis Casablanca Ahmedabad Hong Kong 20 Mumbai offices Chennai Linedata Compliance
Slide 3: Overview
OVERVIEW • Compliance: Why is it Important? • Compliance as a business enabler • ESG Decreasing the Compliance Burden Machine learning & data analytics Compliance as a service Conclusion
Slide 4: Compliance – Why Is It Important?
COMPLIANCE – WHY IS IT IMPORTANT?
Slide 5: Building Trust
BUILDING TRUST • Keep to your word and follow through with your actions • Communicate effectively • Always be honest • Admit your mistakes
Slide 6: How to React with Compliance
HOW TO REACT WITH COMPLIANCE • Strong mandate Compliance • Fact Sheets that report breaches as well as performance • Ability to show full compliance audit • Telling clients what went wrong and how it was corrected
Slide 7: Compliance as a Business Enabler
COMPLIANCE AS A BUSINESS ENABLER 7
Slide 8: Compliance as a Business Enabler
COMPLIANCE AS A BUSINESS ENABLER • Builds TRUST in an organisation • Helps companies avoid SCANDALS • ENABLES the launch of innovative products • INTEGRAL in the running of funds in the fastest growing strategies
Slide 9: Case Study ESG
CASE STUDY ESG
Slide 10: Case Study ESG
CASE STUDY ESG • 16% annualised growth in Deloitte • US growth attributable to ESG investment Deloitte •• 9.3% annualised growth Truly Global in Europe to 2025 PWC/ALFI ESG Mandated Non-ESG Mandated Deloitte Insights 2020
Slide 11: ESG – Global Market Trends
COMPLIANCE AS A BUSINESS ENABLER: CASE STUDY ESG ESG – GLOBAL MARKET TRENDS Covid-19 Impact Scenario One Scenario Two Financial volatility causes a Focus on “non-financial risks” • retrenchment Truly Global into traditionally • Truly Global speeds the adoption of ESG “safe” investments at the expens
Slide 12: Example: No Exposure to Tobacco
COMPLIANCE AS A BUSINESS ENABLER: CASE STUDY ESG EXAMPLE: NO EXPOSURE TO TOBACCO SECTOR EXPOSURE Tobacco FAIL MAXIMUM 20% EARNINGS FROM TOBACCO Tobacco co. FAIL Agri Co. FAIL Logistics co. FAIL Retail Co. PASS 12
Slide 13: Decreasing the Compliance Burden
DECREASING THE COMPLIANCE BURDEN 13
Slide 14: Compliance rules screen
AP Case ld ATOP Rule Active 14316 No Active 14307 No Active 14341 No Active 14314 No Active 14389 No Active 14397 No Active 14413 No Active 55003 No Passive 55004 No Passive 29228 No Passive 30203 No Passive 31127 No e =] o a Q = Q Prohibit Investments where Issuer Market Cap < 5000000000 Security -
Slide 15: Breach dashboard
Account Name 10 9 1.37 17.20 Active Breaches Avg. number of breaches Avg. time to resolv Avg. Number of Rules Number of Breaches by Account Top breaches by Security Breaches by rule type (By Issuer @By Benchmark @ By Concntration 100% 2 " 80% 10 _.$——s- 60% GOOGL 9 : mee a “ , po: | 20% . e@ O% g So
Slide 16: Effectively Dealing with Too Much Information
EFFECTIVELY DEALING WITH TOO MUCH INFORMATION • Machine Learning in the compliance function • Learning how breaches were successfully CORRECTED • ANALYSING why soft breaches move to hard breaches • PRIORITISING breaches based on past risk
Slide 17: Automating Rule Creation
AUTOMATING RULE CREATION • Machine Reading in rule creation • Automated READING of prospectus • INTERPRETATION of mandate information • CREATION of compliance rules • REDUCE time and risk
Slide 18: Compliance as a Service
COMPLIANCE AS A SERVICE • Flexible and Scalable • Rules Setup & MAINTENANCE • Rules Configuration AUDIT • Start of Day/End of Day/ Intra Day
Slide 19: Conclusion
CONCLUSION • Compliance is not there to stifle creativity or restrict opportunity • Its key function is to build trust in your organisation and products. • Strong compliance enables companies to chase mandates and prove to clients that you deliver on your promises. • Delivery can be through traditio
Slide 20: Thank You for Your Attention
~ Linedata ——_—_ THANK YOU FOR YOUR ATTENTION