Compliance Guard Blockchain: Pension Funds & Hedge Funds?
Compliance Guard Blockchain is a platform that uses blockchain technology to secure pension funds. Due to the decentralized nature of the blockchain, investors in pension funds can ensure that the fund managers don’t alter transactions in the system. Such a platform gives confidence to investors since they can quickly verify whether the data provided is accurate.
Rationale of Complaince Guard Blockchain
Real-time data regarding a hedge fund is recorded on the blockchain. Therefore, once data is registered it can’t be altered by any party. Once a transaction is done on this platform, it’s verified, and a trail is created which cannot be erased.
The CG Blockchain will have permanent records of hedge funds on its blockchain. Such compliance alerts will help investors as well as regulators in verifying data. If a hedge fund engages in fraudulent activities, their reputation will be ruined in the system. Such advanced compliance monitoring helps reduce the risk of pension investors hiring a crooked hedge fund firm.
Features of Compliance Guard Blockchain
Here are the key features of this compliance system:
- Simplified Auditability – Due to the presence of a permanent record of data, auditors will have an easy task of going through the transactions.
- Compliance Monitoring – The platform will provide alerts on whether a hedge fund is complying or not; this helps fraudulent flag activities.
- Seamless Integration – The platform will look for ways to seamlessly integrate with existing platforms which will ensure a smooth transition without any disruptions.
Consumer Protection Through Compliance Guard Blockchain
A platform like the Compliance Guard Blockchain is a significant boost for pension fund investors. It’s true that there are existing regulations that have come into place primarily due to the fraudulent activities of hedge funds. However, these rules are still lacking in the area of verifying compliance data. It’s not uncommon for firms to manufacture compliance data without having a way of proving it.
Another way that regulation hasn’t sufficiently safeguarded investors is because compliance alerts remain inside the fund. There’s no obligation to make these signals public; thus external accountability is minimal. Compliance Guard Blockchain helps tackle these inefficiencies by providing a decentralized ledger through blockchain technology.
How Does the Compliance Guard Blockchain Work?
When a hedge fund carries out a transaction, it’s recorded in a private blockchain. The system then verifies it to ensure that it meets the compliance standards. If compliance isn’t done, an alert is generated which is then sent to the monitoring authority.
The platform will consistently record all alerts in real time so that investors can access them at any given time. Auditors will also not face a hard time trying to verify whether a hedge fund has complied or not. With such a platform, cases of pension fund investors getting frauded will drastically drop.