Trade Restrictions are created from the Trade Restrictions tab of the Investment Management workspace.

There are three different categories of restrictions, detailed in this table:

Creating Exclusions

Exclusions will either prevent securities from being purchased, or prevent them from being held, depending on the options selected. The Exclusion Restriction can be used for either securities that are already owned in an account, or to prevent certain securities from being purchased in an account.

1. Navigate to Investment Management > Trade Restrictions.
2. Click Create New Restriction > Exclusion. The Add Exclusion slide-out menu opens.
3. Search for and select the Account the exclusion applies to.
4. Search for and select the Symbol to be excluded.
5. Select a Replacement Behavior:
• Hold Cash: Prevents additional purchases of the security and allocates the weight of the excluded security to cash.
• Reallocate to rest of portfolio: Prevents additional purchases in a security and allocates the weight of the excluded security to the rest of the assigned target/allocated model’s securities, on a pro-rata basis. (Note in this case that the target allocation to cash does not change.)
6. Select a Behavior:
• Hold Existing Shares: Keeps the existing shares of the security, not purchasing or selling additional shares.
• Liquidate Existing Shares Immediately: Liquidates the shares and either allocates to the rest of the portfolio or hold cash depending on the Replacement Behavior setting.
• Liquidate Existing Shares as Needed: Only liquidates shares as needed according to the assigned target while preventing any new purchases.
7. Set a Start Date and an End Date (optional). If an End Date is set, a new option appears. Select the behavior desired when the restriction rule ends:
• Immediately rebalance the account to reallocate to the excluded security: The system will process the rebalance automatically on the end date if the security is in a model sleeve. If the excluded security is in an APM sleeve, the account will reallocate back into the security the next time the account is rebalanced by the client.
• Reallocate to the excluded security when a model or I change its target weight: The exclusion will continue until a model or target change is made.
8. Click Submit to create and enable the Restriction.

Creating Substitutions

The Substitution restriction can be used to replace purchases of securities that are already owned in an account or to prevent certain securities from being purchased in an account.

1. Navigate to Investment Management > Trade Restrictions.
2. Click Create New Restriction > Substitution. The Add Substitution slide-out menu opens.
3. Search for and select the Account the substitution applies to.
4. Search for and select the Symbol to be substituted.
5. Search for and select the Replacement Symbol used in place.
6. Select a Behavior:
• Hold Existing Shares: Keeps the existing shares of the security, not purchasing or selling additional shares.
• Liquidate Existing Shares Immediately: Liquidates the shares and either allocates to the rest of the portfolio or hold cash depending on the Replacement Behavior setting.
• Liquidate Existing Shares as Needed: Only liquidates shares as needed according to the assigned target while preventing any new purchases.
7. Set a Start Date and an End Date (optional). If an End Date is set, a new option appears. Select the behavior desired when the restriction rule ends:
• Immediately rebalance the account to reallocate to the excluded security: The system will process the rebalance automatically on the end date if the security is in a model sleeve. If the excluded security is in an APM sleeve, the account will reallocate back into the security the next time the account is rebalanced by the client.
• Reallocate to the excluded security when a model or I change its target weight: The exclusion will continue until a model or target change is made.
8. Click Submit to create and enable the Restriction.

Creating Equivalent Securities

The Equivalent Securities Restriction treats a set of securities as being “identical” for trade-building, reducing turnover while maintaining similar investment performance. It is at the advisor’s discretion how to use this restriction, but, as examples, Equivalent Securities could be share classes of the same equity, or funds that track the same index. By treating them as equivalent, the system won’t generate a sale of one of them simply to buy another one.

1. Navigate to Investment Management > Trade Restrictions.
2. Click Create New Restriction > Equivalent Securities. The Add Equivalent Securities slide-out menu opens.
3. Search for and select the Account the equivalence applies to.
4. Search for and select the first Symbol to use.
5. Select a Behavior for the symbol:
• No Behavior (default): When the account needs to add to its holdings of the group, securities that are present in the model portfolios will be bought first. When the account needs to trim its holdings, securities not in the model portfolios will be sold first. Among sets of securities that are all in/out of the models, relative buy/sell preferences are undefined. To be prescriptive about these preferences, use one of other options.
• Buy First: When the account needs to add to its holdings of the group, buy this security first. Conversely, when the account needs to trim the group’s weight, sell this security last.
• Do Not Sell: Don’t sell this security. The other securities in the group will be sold instead when the group’s weight needs to be reduced. If the other securities have no remaining positions, keep this security in the account with a “no sell” restriction.
• Do Not Buy: Don’t add to the position of this security, or establish a new position if there isn’t one already. Buy the others in the group instead when the group’s weight is increased.
• Do Not Trade: Combination of Do Not Sell and Do Not Buy.
6. Repeat steps 4 and 5 for as many symbols as needed in this grouping. Note that though Equivalent Security restrictions can consist of only one symbol, the No Behavior and Buy First behaviors have no effect with only one symbol in the group.
7. Equivalent Securities always begin immediately and so the Start Date is locked. You may optionally enter an End Date for the restriction if desired.
8. Click Submit to create and enable the Equivalent Securities restriction.