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Prevent and Document Security Restriction Overrides
Security restrictions—at the global, trade group, or account level—can prevent the buying or selling of securities when rebalancing accounts. When generating a custom strategy for an account, advisors can override these restrictions via a custom strategy, which could result in buying or selling restricted securities.
Advisor Rebalancing gives you options to safeguard trades in restricted securities by requiring approval for trades that override restrictions and requiring documentation before these trades can take place. This can prevent accidental trading in restricted securities.
To enable required approval to trade in restricted securities, select the Approval required for custom strategies that override restrictions check box on the System Settings page. When enabled, trades in restricted securities will need approval and documentation before they can be sent to the Trade List.
For more information, see System Settings: Trade Approval Settings.
While Advisor Rebalancing won't recommend trades in restricted securities, you can override this by using quick trades or custom strategies to trade in restricted securities. When these trades are approved, Advisor Rebalancing will require you to document the restriction override.
The Restrictions dialog box will inform you of the restriction violation. It will also require you to enter notes about the violation before you can proceed with the trade.
Here, you can enter the reason for the trade and other details about the trade, including the reason for the restriction override. The notes entered here can be reviewed by the trade reviewer. These notes will later go to the trade reconciliation history. You can generate bulk reports of these notes in the future for reconciliation, auditing, or trade review purposes.
For more information on creating security restrictions, see Security Restrictions. For more information on quick trades and custom strategies, see Manual Trades. For more information on trade approval, see Approve Trades.
