Automated actions based on restrictions

• US 7,636,686 B2
• Filed: 06/07/2005
• Issued: 12/22/2009
• Est. Priority Date: 06/07/2005
• Status: Active Grant

• Current Assignee: Tegra118 Wealth Solutions, Inc.
• Original Assignee: Checkfree Corporation (Fiserv Incorporated)
• Inventors: Smith, Charles, Figlik, Donna, Feliciano, Adrian, Kandravy, Amy, McKinney, William, Gershon, Simon, Pierdinock, Michele, Giordano, Lorraine, Harding, Ann
• Primary Examiner(s): Subramanian; Narayanswamy
• Application Number:
  US11/146,015
• Publication Number:
  US 20060277127A1
• Time in Patent Office: 1,659 Days
• Field of Search: 705 35- 37, 705/36.R, 705/36.T
• US Class Current: 705/37
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/10 Tax strategies

Abstract

A technique for resolving a violation of an investment account restriction is provided. The restriction is associated with the holding of one or more securities in an investment account. A restriction definition and an associated resolution rule are stored in a data repository. A received order to perform an investment account management action is processed to determine that performance of the action violates the stored restriction definition. The associated resolution rule is then retrieved based upon the determination and then executed. Indications of the determined violation and of the executed resolution rule are stored in the data repository.

Claims

1. A computerized method for resolving a violation of an investment account restriction, the restriction associated with the holding of one or more securities in an investment account, comprising:

storing a restriction definition and an associated resolution rule in a data repository, wherein the stored restriction definition prohibits a holding of a first security in an investment account;

receiving an order to perform an investment account management action, wherein performance of the action would result in a holding of an amount of the first security;

processing the received order to determine that performance of the action violates the stored restriction definition;

retrieving the associated resolution rule from the data repository based upon the determination that performance of the action violates the stored restriction definition, wherein the resolution rule specifies substituting a holding of a second security for a first portion of the amount of the first security and substituting a holding of another asset for a second portion of the amount of the first security, wherein the another asset is one of cash or a third security;

executing the retrieved resolution rule in completing the action; and

storing an indication of a determined violation and an indication of the execution of the resolution rule in the data repository,

wherein the prior steps are performed by one or more computers associated with a portfolio management system.

2. The method of claim 1, wherein the investment account is associated with a style model and the investment account management action is one of a plurality of investment account management actions, and further comprising:

storing information associated with each of the plurality of investment account management actions in the data repository;

processing the stored investment account management action information, other than information associated with the one investment account management action, to determine a performance of the style models,

wherein the prior steps are performed by one or more computers associated with the portfolio management system.

3. The method of claim 1, wherein:

the resolution rule includes at least one criteria for determining at least one of the second security or the another asset to substitute for a holding of the first security; and

executing the retrieved resolution rule includes determining at least one of the second security or the another asset for substitution.

4. The method of claim 1, wherein the action is associated with one of (i) a single investment account, or (ii) a group of investment accounts.

5. The method of claim 1, wherein the action is associated with a group of investment accounts, the resolution rule is a first resolution rule associated with a first one of the group of investment accounts, and executing the first resolution rule only affects the first investment account, and further comprising:

storing a second resolution rule associated with the restriction definition in the data repository, the second resolution rule associated with at least a second one of the group of investment accounts;

retrieving the second resolution rule from the data repository based upon the determination; and

executing the retrieved second resolution rule in completing the action,

wherein the prior steps are performed by one or more computers associated with the portfolio management system.

6. The method of claim 1, wherein the resolution rule is a first resolution rule, and further comprising:

storing at least a second resolution rule in association with the restriction definition in the data repository;

retrieving the at least second resolution rule from the data repository based upon the determination; and

determining that the retrieved first resolution rule has a highest priority among the retrieved resolution rules;

wherein only the first resolution rule is executed based upon the determined priority,

wherein the prior steps are performed by one or more computers associated with the portfolio management system.

7. The method of claim 6, wherein each retrieved resolution rule is associated with a different entity and the priority is determined based upon the entity with which each resolution rule is associated.

8. The method of claim 6, wherein the retrieved resolution rules are associated with respective levels, wherein determining that the retrieved first resolution rule has the highest priority among the retrieved resolution rules includes a comparison of the respective levels for the retrieved resolution rules.

9. The method of claim 1, wherein:

the restriction definition is associated with one of (i) a single investment account, (ii) an investment style under which one or more investment accounts are transacted, (iii) an investment program with which one or more investment accounts are associated, or (iv) a client with which one or more investment accounts are associated; and

the resolution rule is associated with one of (i) the single investment account, (ii) the investment style, (iii) the investment program, or (iv) the client.

10. The method of claim 1, further comprising:

prior to execution of the retrieved resolution rule, storing a second restriction definition and an associated second resolution rule in the data repository, the second restriction definition prohibiting the holding of the second security in the investment account, and the second resolution rule specifying a holding of a fourth security for the holding of the second security;

subsequent to execution of the retrieved resolution rule, determining that the holding of the second security for the investment account violates the stored second restriction definition;

retrieving the second resolution rule from the data repository based upon the determination that the holding of the second security for the investment account violates the stored second restriction definition; and

executing the retrieved second resolution rule, wherein the holding of the second security is replaced with the holding of the fourth security.

11. A system, comprising:

a memory configured to store an investment account restriction definition and an associated resolution rule, wherein the investment account restriction definition prohibits a holding of a first security;

a processor in communication with the memory, wherein the processor is configured to process a trade directive, wherein execution of the trade directive would result in a holding of an amount of the first security, to retrieve the investment account restriction definition from the memory, to determine that execution of the trade directive violates the investment account restriction definition, to retrieve the associated resolution rule from the memory, to execute the associated resolution rule to modify the trade directive, and to store in the memory an indication of the determination that execution of the trade directive violates the investment account restriction definition and of the execution of the associated resolution rule,

wherein the associated resolution rule specifies substituting a holding of a second security for a first portion of the amount of the first security and substituting a holding of another asset for a second portion of the amount of the first security, wherein the another asset is one of cash or a third security.

12. The system of claim 11, wherein:

the trade directive is associated with a group of investment accounts;

the resolution rule is a first resolution rule associated with a first one of the group of investment accounts;

executing the first resolution rule only affects the first investment account;

the memory is further configured to store a second resolution rule associated with the restriction definition, the second resolution rule associated with at least a second one of the group of investment accounts; and

the processor is further configured to retrieve the second resolution rule from the memory based upon the determination, and to execute the retrieved second resolution rule in completing the action.

13. The system of claim 11, wherein:

the resolution rule is a first resolution rule;

the memory is further configured to store at least a second resolution rule in association with the restriction definition; and

the processor is further configured to retrieve the at least second resolution rule from the memory, determine that the retrieved first resolution rule has a highest priority among the retrieved resolution rules, and to execute only the first resolution rule based upon the determined priority.

14. The system of claim 13, wherein the retrieved resolution rules are associated with respective levels, wherein the processor is configured to determine that the retrieved first resolution rule has the highest priority among the retrieved resolution rules based upon a comparison of the respective levels for the retrieved resolution rules.

15. The system of claim 11, wherein:

the restriction definition is associated with one of (i) a single investment account, (ii) an investment style under which one or more investment accounts are transacted, (iii) an investment program with which one or more investment accounts are associated, or (iv) a client with which one or more investment accounts are associated; and

the resolution rule is associated with one of (i) the single investment account, (ii) the investment style, (iii) the investment program, or (iv) the client.

16. The system of claim 11, wherein the resolution rule includes at least one criteria for determining at least one of the second security or the another asset to substitute for a holding of the first security, and wherein the processor is configured to execute the retrieved resolution rule by determining at least one of the second security or the another asset for substitution.

17. The system of claim 11, wherein the trade directive is associated with one of (i) a single investment account, or (ii) a group of investment accounts.

18. The system of claim 11, wherein each retrieved resolution rule is associated with a different entity and the priority is determined based upon the entity with which each resolution rule is associated.

19. The system of claim 11, wherein:

prior to execution of the retrieved resolution rule, the memory is further configured to store a second restriction definition and an associated second resolution rule, a second restriction definition prohibiting the holding of the second security, and the second resolution rule specifying a holding of a fourth security for the holding of the second security; and

subsequent to execution of the retrieved resolution rule, the processor is further configured to retrieve the second investment account restriction definition from the memory, to determine that the holding of the second security violates the second investment account restriction definition, to retrieve the second resolution rule from the memory, and to execute the associated second resolution rule to further modify the trade directive such that an execution of the modified trade directive would result in the holding of the fourth security instead of the holding of the second security.