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Compliance Sentinel Agent

The Compliance Sentinel is your dedicated regulatory oversight specialist. While other agents handle operational tasks, Compliance Sentinel ensures every validation, transaction, and decision follows ASIC RG94 requirements and maintains bulletproof audit trails for regulatory confidence.

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Primary Role

Regulatory Oversight & Compliance Assurance Compliance Sentinel operates as your compliance officer embedded in OpsHub. It continuously monitors control points, validates regulatory requirements, collects audit evidence, and generates comprehensive compliance documentation—all in real-time.

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Key Capabilities

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How Compliance Sentinel Works

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1. Continuous RG94 Validation

Compliance Sentinel automatically executes ASIC RG94 compliance templates on configured schedules (daily, weekly, quarterly):

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2. Automated Breach Detection & Escalation

When variances exceed tolerance thresholds, Compliance Sentinel immediately:

1. Escalates the breach with full context to compliance and operations teams
2. Creates a formal breach record in compliance.breaches schema with evidence links
3. Coordinates investigation through delegated agents
4. Logs all investigation steps for audit trail
5. Generates breach report for management and regulators

Example: A NAV variance of 5bp detected for Fund XYZ triggers immediate logging, investigation escalation, and audit evidence collection without manual intervention.

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3. Audit Evidence Collection

For every validation, Compliance Sentinel automatically captures:

• Validation Procedure - Which RG94 template executed, when, by whom
• Data Compared - Administrator NAV vs. custodian data vs. calculated NAV
• Variances Identified - Specific line items and amounts out of tolerance
• Root Cause Analysis - Investigation results and resolution steps
• Approvals & Sign-offs - Approval evidence and approval dates
• Resolution Actions - How variances were resolved or escalated

All evidence stored in audit.audit_log with searchable metadata and regulatory compliance timestamps.

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4. Compliance Report Generation

Generate audit-ready compliance reports in seconds: Quarterly RG94 Report Includes:

• Executive summary of validation procedures performed
• Breach history with root causes and resolutions
• Control effectiveness assessment (SLA metrics, approval timeliness)
• Evidence attachments (validation logs, approval records, investigation summaries)
• Signed certification of procedures performed
• Regulatory sign-off template ready for compliance officer signature

Annual Compliance Report Includes:

• All quarterly reports combined with trend analysis
• Year-over-year breach comparison and improvement metrics
• Control testing results (effectiveness of validation procedures)
• System change log (any updates to validation templates or tolerances)
• Compliance metrics dashboard (validation coverage %, breach rate, average resolution time)

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Real-World Use Cases

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Case 1: Monthly RG94 Compliance Certification

Scenario: End of month compliance certification deadline. Compliance officer needs documented proof that all NAV validations followed RG94 procedures. Without Compliance Sentinel:

• Manually review 50+ daily validation records
• Gather evidence from emails, spreadsheets, approval systems
• Compile into compliance report format (2-3 hours)
• Risk: Missing evidence, incomplete audit trail, formatting inconsistencies

With Compliance Sentinel:

1. Ask: “Generate monthly RG94 compliance report for October 2024”
2. Compliance Sentinel queries all October validations from compliance.compliance_checks schema
3. Retrieves associated audit logs, breach records, and approval evidence
4. Generates PDF report with embedded evidence and signed certification
5. Delivers in less than 5 minutes with zero manual effort

Result: 3-hour manual process reduced to 5 minutes, audit-ready documentation with complete evidence trail

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Case 2: ASIC Breach Investigation & Documentation

Scenario: NAV variance of 6bp detected for Emerging Markets Fund. Need immediate investigation with documented evidence for regulatory file. Without Compliance Sentinel:

• Investigate cause manually (1 hour)
• Document investigation steps in ad-hoc format
• Email evidence scattered across multiple systems
• Incomplete audit trail risk

With Compliance Sentinel:

1. Breach automatically detected and logged as it exceeds 3bp threshold
2. Compliance Sentinel creates formal breach record and escalates
3. Coordinates investigation with Data Quality Analyst (identifies: late FX trade processing)
4. Logs each investigation step with timestamps and evidence links
5. Generates breach report ready for regulatory submission

Result: Documented investigation with complete evidence trail created automatically, fully audit-ready in minutes

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Case 3: Quarterly Compliance Dashboard for Management

Scenario: Management needs to understand compliance status: How many validations were performed? Any breaches? Were approval SLAs met? Without Compliance Sentinel:

• Pull validation records from multiple systems
• Manually aggregate breach data and create metrics
• Calculate SLA compliance manually (1-2 hours)
• Dashboard becomes static snapshot

With Compliance Sentinel:

1. Ask: “Create quarterly compliance dashboard for Q3 2024”
2. Compliance Sentinel queries compliance schema for all Q3 data
3. Coordinates with Dashboard Architect to visualize:
   • Validation coverage (100% of funds validated daily)
   • Breach trends (3 breaches, all resolved within SLA)
   • Control effectiveness (approval SLA: 99.2% met)
   • Root cause analysis (most common: FX rate lag 40%, trade timing 35%)
4. Creates interactive dashboard with drill-down capabilities

Result: Real-time compliance visibility with one command, no manual aggregation

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Database Integration

Compliance Sentinel has specialized access to compliance-focused schemas: Write Access:

• compliance.compliance_checks - Validation procedures and results
• compliance.breaches - Breach records with investigation details
• audit.audit_log - Complete audit trail of all validations

Read Access:

• validation.* - Validation history and results
• workflow.* - Approval workflow status and SLA metrics
• investment.funds, investment.holdings - Fund and position data for validation context

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Tool Capabilities

Compliance Checking Tools:

• Execute RG94 validation templates with configurable tolerances
• Automated breach detection and classification
• Compliance report generation with evidence capture
• Audit integrity verification and audit log queries

Data Query Tools:

• Natural language to SQL for compliance data queries
• Breach history analysis and trend reporting
• Validation coverage assessment
• Control effectiveness metrics

Workflow Tools:

• Route compliance escalations to appropriate teams
• Track approval SLA compliance
• Coordinate investigation workflows with other agents
• Generate approval evidence for audit trail

Report Generation:

• Quarterly and annual compliance reports
• Breach investigation summaries
• Control testing documentation
• Regulatory submission-ready formats

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Integration with Other Agents

Compliance Sentinel coordinates with specialist agents to deliver comprehensive compliance:

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Best Practices

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Configure Tolerance Matrices Correctly

Work with your compliance and operations teams to set appropriate tolerance matrices:

• NAV Tolerance: 3bp is ASIC standard, but your fund may require tighter limits
• Cash Tolerance: Typically 0bp (zero tolerance for cash discrepancies)
• Currency Tolerance: May differ from NAV tolerance for multi-currency funds
• Approval Tolerance: Higher thresholds may bypass approval for variances with confirmed causes

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Schedule Validations at Appropriate Times

Configure validation schedules to match operational workflows:

• Daily Validations: Run after NAV calculation completion (typically post-custodian data receipt)
• Weekly Reviews: Aggregate weekly breach summary for operations team
• Monthly Certification: Run final validation run for month-end RG94 certification
• Quarterly/Annual: Trigger comprehensive compliance reports for regulatory submission

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Review Breach Patterns Quarterly

Use Compliance Sentinel’s breach analysis to identify systemic issues:

• Most Common Causes: Address root causes (e.g., if FX lag is frequent cause, adjust validation timing)
• High-Breach Funds: May need more frequent validations or tighter monitoring
• Resolution Times: Track average investigation duration and accelerate for common issues

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Maintain Clear Audit Evidence

Leverage Compliance Sentinel’s automatic audit trail to maintain regulatory confidence:

• Review audit logs quarterly for completeness and accuracy
• Verify evidence attachments are comprehensive and accessible
• Test audit trail recovery periodically (simulated investigation) to ensure process works under pressure
• Archive compliance reports in accessible format for 7-year retention

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Common Questions

Q: Can Compliance Sentinel replace our compliance officer? A: No, Compliance Sentinel augments your compliance officer. It handles routine validation monitoring, breach detection, evidence collection, and report generation—freeing your compliance officer to focus on strategic compliance improvements, policy updates, and regulatory liaison. Q: What if Compliance Sentinel detects a breach I don’t agree with? A: All breach detection is logged with full context (which data compared, which threshold triggered, when). You can review the breach record, investigate the underlying cause, and update tolerance settings or templates if needed. All changes are audited. Q: Does the system automatically resolve breaches? A: No. Compliance Sentinel detects breaches and escalates them for investigation, but resolution requires human judgment. Other agents (Fund Accountant, Data Quality Analyst) investigate root causes, and your team makes resolution decisions. All investigation steps are automatically logged. Q: How do I use compliance reports in regulatory submissions? A: Compliance Sentinel generates reports in regulatory-submission format with evidence attachments. Many reports are ready for direct regulatory submission. Your compliance officer reviews, adds any required certifications or signatures, and submits. Some regulators may require custom formats—contact support for regulatory template customization. Q: Can I customize RG94 validation templates? A: Yes. Default templates are provided for ASIC RG94, but you can customize tolerance matrices, add custom validation rules, and configure fund-specific requirements. Customization is tracked in audit logs.

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Getting Started

1. Configure Your RG94 Template: Work with your compliance team to set tolerance matrices and validation schedules for your fund structures
2. Schedule Initial Validations: Start with daily automated validations post-NAV calculation
3. Monitor Breach Detection: Review automated breach escalations and investigation processes
4. Generate Your First Report: Run a compliance report to verify evidence collection and format
5. Integrate with Approvals: Configure approval escalation workflows for breaches requiring decision

Ready to transform compliance from manual burden to proactive oversight?

Start Using Compliance Sentinel

Learn how to leverage Compliance Sentinel in your OpsHub workspace

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