Pre-Trade Compliance
Catch Suitability Issues Before the Trade
Pre-Trade Analyzer runs pre-trade suitability analysis on every proposed portfolio, checking it against the client’s KYC, your suitability rules and, where provided, your restricted securities list before an order is placed. As a result, CIRO, FINRA and SEC regulated advisors get a clear path to a compliant proposal, and compliance gets an audit-ready record of every check.
Front-Office Suitability
Pre-Trade Suitability Analysis at the Point of Recommendation
KYC Profile Match
Every proposal is scored against the client's risk tolerance, objectives and time horizon on your firm's own risk scale before the advisor submits it.
Concentration Limits
Positions over a concentration threshold, such as a 30% single-position limit, are flagged instantly. The analyzer also shows the allocation change that brings the portfolio back within policy.
Restricted Securities
Enforce pre-trade compliance by syncing your Product Shelf or proprietary restricted list, catching flagged securities before execution.
Drift vs Model
Compare client holdings to your model portfolios to see drift, holdings overlap and the trades that close the gap.
Stress Tests & VaR
Value at Risk, expected shortfall, drawdown and historical stress scenarios show how a portfolio may behave in a downturn.
Fee Impact
Side-by-side MER, TER and trailing commissions make cost differences visible before a client commits.
How It Works
From Analysis to Client-Ready Proposal
Each step writes to one audit trail, so the reasoning behind every recommendation can be reproduced on demand.
Step 1
Import
Load client holdings by CSV, or extract them from a client statement PDF with AI.
Step 2
Analyze
Score the portfolio against KYC, concentration, prohibited-asset and restricted-list rules.
Step 3
Compare
Model the proposal against current holdings: allocation, overlap, performance, risk and stress.
Step 4
Resolve
Rebalance toward the client's KYC target, with any remaining exception documented before the proposal proceeds.
Step 5
Propose
Generate a client-ready proposal with suitability results, drift, stress tests and the trade ticket.
Step 6
Document & Deliver
Deliver the proposal with its suitability results and full audit trail.
Before the Order
Know a Trade Is Suitable Before It’s Placed
With pre-trade suitability analysis, rules run instantly during proposal creation. As a result, advisors correct compliance issues straight away, rather than weeks later through post-trade surveillance.
KYC and risk-scale scoring
Concentration and drift checks
Prohibited high-risk asset checks
Show Clients the Risk
Risk Analysis
Clients Understand
Evaluate current versus proposed portfolios across asset allocation, performance, Value at Risk and market stress tests. In addition, plain-language, AI-generated explanations help clients understand the risk.
VaR and expected shortfall
Historical stress scenarios
Plain-language AI explanations
Audit-Ready Proposals
Every Recommendation Backed by a Record
Every suitability evaluation and proposal change is logged. As a result, compliance teams can see the reasoning behind each recommendation and reproduce the result on demand.
Rule-by-rule suitability results
Documented exceptions
Proposal audit trail
RULE-001Total allocation equals 100%total = 100.00%PassRULE-002Risk no more than 10 pts above KYCportfolio 56 · KYC 60PassRULE-003Risk no more than 10 pts below KYCdelta -4 · limit -10PassRULE-004No high-risk assets for low profileshigh-risk assets: nonePassRULE-005No firm restricted-list securitiesrestricted hits: nonePassFrequently Asked Questions
Pre-Trade Suitability Analysis
What is pre-trade suitability analysis?
Pre-trade suitability analysis checks a proposed portfolio against the client’s KYC and the firm’s suitability rules before an order is placed, so issues are fixed at the point of recommendation rather than found weeks later in post-trade surveillance. Four Eyes Pre-Trade Analyzer automates it, scoring each proposal, flagging concentration and restricted-list issues, and recording every result in an audit trail.
What does the Pre-Trade Analyzer check before a trade is placed?
The analyzer checks suitability, concentration and firm restrictions before the order. It scores each proposed portfolio against the client’s KYC risk profile on your firm’s own risk scale, flags positions that exceed concentration limits and, when your firm’s restricted securities list is connected, flags securities on it. Every proposal is evaluated against five core suitability rules, and each writes an audit entry, so the result can be reproduced later. Advisors can work in English or French.
Does Pre-Trade Analyzer support Reg BI and CIRO suitability rules?
Yes. Pre-Trade Analyzer documents the suitability determination at the point of recommendation. For U.S. firms, the checks help document Regulation Best Interest care obligations and FINRA Rule 2111 suitability, and advisors are prompted to confirm Reg BI obligations for U.S. securities. For CIRO dealers, the checks align with CIRO Rule 3400 suitability requirements and NI 31-103. In both cases, the suitability results and the advisor’s rationale stay with the proposal.
What happens when a proposal doesn't match the client's KYC?
The analyzer stops the proposal before it reaches the client. A hard stop flags the mismatch and shows the allocation changes that bring the portfolio back within the client's KYC target. If an exception remains, the advisor's rationale is recorded with the proposal.
Can advisors compare a client's current portfolio to a model or proposed portfolio?
Yes, side by side. Advisors compare current, model and proposed portfolios across allocation, holdings overlap, historical performance, Value at Risk and four stress scenarios: a mild 10% correction, the COVID 2020 drop (34%), the 2008 financial crisis (38%) and the dot-com crash (49%), then resolve gaps toward the client's KYC target.
How do advisors load client holdings into the analyzer?
Advisors load holdings by CSV or extract them from a statement PDF with AI. Client and model portfolios import from CSV, and AI can read account details and holdings from a client’s statement, including statements from other firms, for the advisor to review before import.
What does the client proposal include?
The client proposal is a complete, client-ready report. It includes an executive summary, suitability results, drift analysis, stress test results, alerts, the trade ticket, the advisor’s rationale, methodology and your firm’s approved disclaimers and disclosures, which compliance manages centrally in English or French.
How does pre-trade analysis complement post-trade surveillance?
Pre-trade analysis moves suitability upstream. Pre-Trade Analyzer catches issues at the point of recommendation, while Risk7 monitors executed trades and accounts after the fact. Together they cover compliance before and after the order on one platform.
Do firms need a restricted securities list to use the Pre-Trade Analyzer?
No. Suitability, concentration, drift and stress checks run on every proposal. Restricted-securities checks are added when your firm syncs Product Shelf Management or provides its own restricted list.
After the Trade
Pair Pre-Trade Checks with Post-Trade Surveillance
Pre-Trade Analyzer catches suitability issues before the order, and Risk7 surfaces the exceptions that still need human judgment after it, both on the same client records. Start with either and add the other as you grow. Before the proposal, advisors can research and compare products in Product Research & Point of Sale.