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Solutions

UCITS Eligibility Classifier

Assisting compliance tasks with NLP

When applied to Undertakings for Collective Investment in Transferable Securities (UCITS) funds’ prospectuses, the UCITS Eligibility Classifier can be used to speed up fund managers’ compliance checks.

This solution works by selecting sentences from the fund’s prospectus that answer the conditions of criteria outlined by the CSSF. This enables automatic tracking of evidence and the storage of proof for decision making and auditing purposes while the end user retains the final say on the classification.

Key features of our UCITS Eligibility Classifier product

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Reduced workload: Containing, on average, around 150 pages, the manual processing of a prospectus can be time consuming. Our model analyzes a prospectus much faster than the human equivalent procedure, increasing the efficiency and freeing up valuable time.

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Minimized errors: Due to the length of documents and the different interpretation of the regulation by reviewers, the manual process is error prone. This product offers a standardized process, automated by a pre-trained model that makes consistent decisions, thereby reducing errors and removing human bias from the process.

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Hybrid system: Leveraging the power of “with”, the product accelerates the compliance task by providing a subset of sentences to the human decision maker. The four-eye compliance check is augmented with technology.

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User friendly interface: The product is packaged to ensure optimized usage. The user friendly interface enables the processing of multiple prospectuses one after the other, stores the results in a centralized database, and allows confirmation or rejection with comments seamlessly.

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Traceability: The solution is integrated with a database of prospectus documents that should be assessed. After classification, all metadata (including relevant sections extracted by the algorithm), the user’s confirmation, a timestamp, and any comments are documented and stored. This decision trail can be used for auditing and compliance purposes.

AI can help optimize regulatory processes

With the help of Natural Language Processing (NLP) and machine learning, the UCITS Eligibility Classifier can assess whether a prospectus is, for instance, compliant with the following criteria:

  • The Law of 17 December 2010 or the Directive 2009/65/EC; and
  • A limit of 10% investment in transferable securities or money market instruments.

NLP enables the machine to read and understand human language and subsequently derive meaning from it. Our UCITS Eligibility Classifier product has ‘learnt’ the linguistic pattern of relevant texts for UCITS eligibility from a training on official prospectuses.

Join us in improving business efficiency with AI

Deloitte Luxembourg’s artificial intelligence (AI) solution, can be integrated and customized based on your specific needs. Using NLP can help improve processes by speeding up tedious tasks to enable employees to focus on other work. The elements used to build this product are easily transferable to any use case where a specific requirement has to be found in a document (i.e. regulatory, legal, etc.). Deloitte Luxembourg can help you take this important step in your AI journey.

Contacts

Jean-Pierre Maissin

Jean-Pierre Maissin

Partner | Strategy, Analytics & M&A and EU Leader

With over 20 years in consulting, Jean-Pierre Maissin has acquired a strong expertise in program management, regulatory programs and IT strategy & transformation projects. Throughout his career, Jean-... More

Xavier Zaegel, FRM

Xavier Zaegel, FRM

Partner | Consulting – IM & PERE Leader

Xavier is a partner within the advisory and consulting department and is the head of the Capital Markets practice in Luxembourg. As a market and credit risk specialist, he has been leading various ass... More

Nicolas Griedlich

Nicolas Griedlich

Partner | Artificial Intelligence & Data

With more than 10 years of experience with Deloitte consulting, Nicolas developed business and technical competencies in FSI. He is driven by the enhancement of the data value while aligning its manag... More

Fabian De Keyn, CQF

Fabian De Keyn, CQF

Director | Capital Markets – Financial Risks

Fabian joined Deloitte in February 2014 and is Director in the Capital Markets Department. He is specialised in Regulatory Reporting, OTC Valuations, Risk management advisory and solutions for the ban... More

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