Specialised Solutions for Derivatives Issuers’ Compliance Management

We offer a comprehensive set of risk and compliance solutions tailored to a variety of derivatives issuers' compliance obligations. We can help you comply with derivatives issuers' regulations in a commercially oriented and goal-focused manner, providing a tailored approach to derivatives issuers' compliance management with regard to your specific circumstances, including:

• Your business goals
• Derivative products you offer
• Your business size
• Your technology and human resources
• Your risk appetite
• Your governance structure
• Your client demographics
• Your countries of operation, their applicable laws, and relevant derivatives issuers' licensing requirements and regulations, including key aspects such as outsourced providers' monitoring, compliance training, risk management, audit, and assurance.
• Any related compliance obligations, including, but not limited to, derivatives issuers' obligations under privacy laws, anti-money laundering and counter-terrorist financing (AML/CFT) laws, fair trading laws, and more.
• Derivatives issuers' compliance assurance obligations, including internal control design and testing, implementation of compliance calendars, management plans, compliance assurance programs and other second and third-line compliance requirements.
• Specific operational compliance requirements for derivatives issuers, including but not limited to:
  • Trade execution
  • Clearing and settlement
  • Broker-dealers' conduct
  • Client due diligence and onboarding
  • Surveillance and monitoring
  • Recordkeeping
  • Conflict of interest management
  • Regulatory technology (RegTech) integration
  • Internal reporting
  • External reporting
  • Regulatory Filings

 

What Jurisdictions Do Our Compliance Solutions Cover?

Our compliance solutions extend across major financial markets and cover derivatives issuers' regulation and derivatives issuers' licensing requirements in the following jurisdictions:

• Australia: Where over-the-counter (OTC) derivatives issuers must comply with the Australian Securities and Investments Commission's (ASIC) regulations under the Corporations Act 2001.
• United States: Where derivatives issuers are regulated by the Commodity Futures Trading Commission (CFTC) under the Dodd-Frank Act (after the Dodd-Frank Wall Street Reform) and Consumer Protection Act emphasising commodity futures trading and Securities and Exchange Commission guidelines.
• United Kingdom: Where the UK's Financial Conduct Authority (FCA) oversees derivatives issuers, requiring adherence to the Financial Services and Markets Act 2000, with a focus on market conduct and financial institutions.
• Singapore: Where the Monetary Authority of Singapore (MAS) regulates derivatives issuers under the Securities and Futures Act, which covers foreign exchange (FX), derivatives contracts and required reporting.
• New Zealand: Where the Financial Market Authority (FMA) oversees licensed derivatives issuers pursuant to the Financial Markets Conduct Act 2013, with a focus on compliance with the set of standard derivatives issuers' licence conditions.
• European Union: Where derivatives issuers in the EU must navigate the Markets in Financial Instruments Directive (MiFID II) and the European Market Infrastructure Regulation (EMIR), addressing financial markets integration and transaction reporting.
• Low Tax Jurisdictions, including:

• Cayman Islands Monetary Authority (CIMA) Derivatives Issuer License: Where CIMA regulates the issuance of derivatives in the Cayman Islands under the Securities Investment Business Law (SIBL) and the Mutual Funds Law.
• Bermuda Monetary Authority (BMA) Derivatives Issuer Registration: Where the BMA oversees the registration of derivatives issuers in Bermuda under the Investment Business Act (IBA).
• British Virgin Islands Financial Services Commission (BVI FSC) Derivatives Issuer License: Where the BVI FSC grants licenses to derivatives issuers in the British Virgin Islands under the Securities and Investment Business Act (SIBA) and related regulations.
• Other offshore financial centres.

 

What Types of Derivatives Issuers Do We Support?

Our derivatives issuers' compliance solutions cover the following types of financial institutions:

• Derivatives Exchanges: These platforms facilitate the trading of derivatives products such as futures and options. They provide a regulated environment, enforce trading rules, and often include a clearinghouse to mitigate counterparty risk.
• Exchange-Traded Derivatives Issuers: These businesses create and manage derivative products traded on regulated exchanges, providing transparency and liquidity to the market.
• Over-the-Counter (OTC) Derivatives Issuers: These businesses facilitate the trading of derivatives directly between two parties, often customising contracts to meet the parties' specific needs.
• Swaps Execution Facilities (SEFs): These platforms enable trading swaps, a type of derivative contract, by bringing together buyers and sellers in a regulated environment.
• Clearinghouses: These organisations serve as intermediaries in derivatives transactions, ensuring both parties fulfil their obligations and managing the risk of default.
• Forex Platforms: These businesses provide a marketplace for trading foreign exchange derivatives, allowing participants to hedge or speculate on currency movements.
• Other Businesses Involved in Derivatives Markets: This includes entities that participate in the trading of swaps and derivatives contracts based on a variety of underlying assets, such as currency derivatives, commodity derivatives (e.g., agricultural products, energy resources), and precious metals derivatives (e.g., gold, silver).

 

 

Derivatives Issuers’ Compliance Advisory

• Detailed Compliance Advice: Covering derivatives issuers' compliance management issues across the first, second, and third lines, as well as matters related to effective compliance with financial markets regulations and derivatives issuers' licensing requirements.
• Banking Relationships Advice: On risk and compliance issues related to managing and expanding relationships with banks, liquidity providers, and other financial institutions to help you meet their risk appetite requirements, anti-money laundering and counter-terrorist financing requirements, fraud prevention and recall volume expectations, and other compliance-related and operational standards.
• Operational AML Advice: Advising support, onboarding, KYC, operating and other teams on the day-to-day onboarding and support queue management, effective AML/CFT resource allocations, and operational improvements, helping you maintain the overall customer experience and efficiency while remaining compliant with the derivatives issuers' AML/CFT requirements.
• Operational Compliance Advice: Advising compliance, management, technology, and support teams on the day-to-day compliance with derivatives issuers' regulations, focusing on internal processes and critical internal controls for effective derivatives issuers' compliance management.
• Risk Management Advice: Covering risk rating and methodologies, risk assessments, management, and mitigation for various risk types faced by derivatives trading platforms and businesses, including regulatory, ML/TF, fraud, data protection, and operational risks. We help you safeguard against potential compliance breaches and comply with risk management obligations under derivatives issuers' licensing requirements and other applicable laws and regulations.
• Compliance Framework Advice: To help you create or enhance your compliance management framework, identify gaps and areas of improvement, meet the derivatives issuers' compliance obligations effectively, improve internal governance and reporting, and optimise them for market expansion and growth.
• Derivatives Issuers' Licensing Advice: We can guide you through the licensing process, help you apply regulations to your specific circumstances and business environment, and meet derivatives issuers' licensing requirements to become licensed or maintain it.
• Peer Benchmarking and Best Practices: We can help you benchmark your compliance practices against peers and applicable regulatory compliance guidance, identify areas for improvement and adopt best practices for enhanced compliance.
• Government Agencies Liaison Advice: We provide strategic guidance to senior management and compliance teams on maintaining and managing relationships with external bodies, including regulators, AML/CTF supervisors and law enforcement agencies, focusing on long-term compliance strategies and proactive engagement.
• Specific Derivatives Issuers' Compliance Issues: We can help you resolve specific risk or compliance issues related to derivatives issuers' regulations and compliance obligations, including but not limited to external audits and reviews, reporting, oversight, difficult clients or transactions, expansion challenges, compliance management issues, process optimisation, regulatory challenges you may encounter and more.
• Further information: You can visit our Regulatory Compliance Consulting Solutions page for a comprehensive list of advisory services we offer to derivatives issuers and other licensed financial institutions, financial services providers, market participants, and regulated businesses.

 

 

Reporting and Regulatory Liaison Solutions for Derivatives Issuers’ Compliance

• Regulator Liaison Management: Providing operational guidance to senior management and compliance teams on managing relationships with regulators, AML/CFT supervisors, police bodies, privacy commissioners, and other government entities. This includes handling requests for information, responding to ad-hoc regulatory inquiries, managing findings from audits and investigations, managing compliance with reporting obligations for derivatives issuers, futures trading platforms and more.
• Board and Committee Reporting: Facilitating structured reporting workflows for various committees and board delegates, including risk, compliance, and audit committees, focusing on your current compliance status, deviations from your risk appetite, changes in risk ratings and any operational compliance updates to ensure that governance structures are well-informed and aligned with compliance management practices.
• Compliance Performance Metrics: Developing and presenting comprehensive compliance performance metrics to the board or relevant committees, offering insights into your compliance effectiveness and identifying points for improvement in key compliance areas, including compliance training, fraud prevention, compliance monitoring, risk rating and assessment, controls effectiveness, adherence to your compliance calendar, regulatory technology (RegTech) performance, and more.
• Internal Audit Reporting: We can help you increase the effectiveness of the internal audit to make its findings reflect your actual performance against the derivatives issuers' compliance obligations. This includes developing tailored methodologies for the auditors, preparing the necessary audit evidence and reviewing audit results. The goal is to ensure that audit procedures and outcomes directly contribute to maintaining and enhancing your compliance status and internal controls' effectiveness.
• AML/CFT Reporting Compliance:  We help with the implementation of effective AML/CFT reporting processes, aligning with specific anti-money laundering regulations for internal oversight and prompt escalation of critical AML issues within your business to help the management receive a clear overview of your AML/CFT compliance status.
• Transactional Reporting: Implementing effective transactional reporting procedures to help with derivatives issuers' compliance management of reporting obligations under various laws and regulations, including submitting SAR, SMR, STR, PTR, TTR, specific reportable matters under the derivatives issuers' licensing requirements and other externally reportable transactions and activities.
• Internal Quality Assurance Reporting: While second-line control testing is crucial for complying with derivatives issuers' regulations, including derivatives issuers' licensing requirements, first-line quality assurance results are equally important for effective risk and compliance management. We help organise effective reporting lines, tailor reporting content to your specific circumstances, products, and team size, and establish a structured approach to responding to reporting outcomes.

 

 

Comprehensive Compliance Management Solution for Derivatives Issuers

Our compliance management services include, but are not limited to, the following:

• Derivatives Issuers' Compliance Management Leadership: We act as your Compliance Leads and Compliance Managers, fully managing compliance obligations under the applicable derivatives issuers' licensing requirements, laws, regulations, industry codes, and regulatory guidance.
• Second-Line Compliance Management: We offer a full range of second-line compliance assurance solutions, including internal controls testing for operational, compliance, marketing, legal and other risks, as well as managing issue closure control testing and more.
• Supporting the Board in Strategic Compliance Management: Advising on the necessary compliance resourcing, budget, tools, role structuring, and compliance functions' structure to support your specific business objectives within your risk appetite and risk management framework.
• Compliance Project Management: Effectively coordinating between senior management, committees, legal advisers, risk and compliance functions, outsourced providers, and different departments, including product development, technology, customer support, operations, assurance, marketing, and others, to help you successfully implement compliance projects across the business.
• Customised Governance Solutions: Tailoring governance frameworks and mechanisms to fit your specific governance structure and effectively comply with derivatives issuers' regulations and other applicable obligations. Whether your business is locally oriented, a start-up, undergoing expansion, part of a multinational group, has a listed parent company or is undergoing restructuring, we tailor the oversight of derivatives issuers' compliance management to your business case.
• Stakeholder Management and Reporting: Reporting to the board, committees, shareholders, regulators and other stakeholders. Providing management and the board with comprehensive compliance reports that cover your compliance with derivatives issuers' compliance obligations, regulatory development summary, compliance-related data and statistics, internal controls testing outcomes and more. Also covering the status of your specific compliance-related projects and compliance goals, relevant compliance KPIs, and more.
• Compliance Calendar Implementation: We design and implement compliance management programs and calendars, covering such areas of derivatives issuers' compliance obligations as policy and key document reviews, control testing, risk assessment and reviews, vendor reviewers, user system access reviews, assurance activities and more.
• Managing Customer Onboarding and Due Diligence: Implementing commercially oriented and compliant processes for KYC information collecting, Know Your Business (KYB), ML/TF risk assessment, PEP and Sanctions screening, CDD and EDD, especially for higher ML/TF risk clients, to help you comply with AML/CFT compliance obligations for derivatives issuers.
• AML Transaction Monitoring and Reporting: Developing and implementing a set of business-specific ML/TF alerts and red flags to detect and report suspicious transactions to comply with the derivatives issuers' AML requirements without making AML/CFT compliance a hindrance to business.
• Information Requests and AML/KYC Data Sharing: Handling information requests from law enforcement agencies, AML/CTF supervisors, and other relevant AML/CTF designated entities, such as your banking partners and other essential service providers (liquidity providers, finance providers, etc.), ensuring that you are fully supported in all AML/CTF compliance-related communications.
• Business Expansion Support: Providing support for your business expansion objectives, recognising and assessing new risks, developing and implementing controls and mitigations for them, as well as addressing new compliance obligations and putting in place practical tools and systems to manage them.
• Derivatives Issuers' Operational Compliance: Including but not limited to:
  • On-the-Ground Compliance: Conducting compliance management meetings, organising routine and ad hoc compliance reporting, overseeing mitigations and controls testing, leading adjustments and enhancements to your internal controls and protocols when required.
  • Compliance Process and Operations Building: Developing effective and compliant procedures and processes to implement your policies, support your operations across different teams and mitigate operational, regulatory and other risks.
  • Outsourced Provider Performance Monitoring: Setting up initial due diligence and ongoing review frameworks for your outsourced providers to help you meet the required service standards for outsourcing under various derivatives issuers' compliance obligations, including derivative issuers' licensing requirements.
  • Incident Management and Reporting: We can help you set up effective processes for incident reporting, escalations, and management at different levels of your business.

 

Derivatives Issuers’ Compliance Assurance 

Our services include:

• Compliance Assurance Programs:  We can design and implement your compliance assurance program to maintain enhanced oversight of your compliance with both derivatives issuers' regulations and your internal compliance and risk appetite thresholds.
• Organisation-Wide Risk Assessments: Helping you focus on the specific risks faced by your business, considering its size, products, client types, jurisdictions of operation, delivery channels, financial institutions you interact with, available technology, and other tools. This includes assessing available mitigations, controls, their effectiveness, residual risk ratings, and the plan to move forward.
• Internal Controls Design: We can develop internal controls for various risk types, including regulatory, fraud, operational, strategic, financial, and other risks. Please visit our Internal Controls Design page for more information. 
• Assurance Testing: We conduct assurance testing to verify that the business complies with its policies, procedures, and derivatives issuers' compliance obligations, including derivatives issuers' licensing requirements. We also assess whether your internal controls effectively mitigate existing risks, including those required to be monitored under the applicable derivatives issuers' regulations. This process includes a compliance controls testing report and, if necessary, a gap analysis.
• Compliance Quality Assurance: We go beyond merely meeting regulatory requirements. We focus on evaluating and enhancing your risk and compliance management processes to ensure they align with your current and future goals, business model, your risk analysis, your current client inflow, and more. We also suggest which compliance processes you can use to meet your goals. Here is an example of this service in the AML/CFT area.
• Assurance Reporting: Compiling testing findings and issuing comprehensive compliance assurance reports, which include:

• Identification of any deficiencies or control weaknesses, with clear explanations and potential root cause analysis.
• Recommendations for corrective actions to address identified issues and enhance compliance effectiveness.
• Evaluation of the overall effectiveness of your internal controls and regulatory compliance monitoring program against your desired assurance level.

• Regulatory Inspection Readiness: We can help your business prepare for external audits and regulatory inspections, reducing the risk of adverse findings related to derivatives issuers' compliance obligations. This includes conducting mock inspections to identify gaps, reviewing documentation and record-keeping practices to ensure all relevant materials are well-organised and readily accessible, and training staff on their roles in the inspection process. We assist in identifying any missing information and weak points, provide interview preparation, and more to ensure readiness for auditor or regulator review.
• Further information: You can visit our Compliance Assurance Solutions page for more information on our third-line compliance assurance review solutions.

 

Compliance Remediation Solutions

Our focus areas include:

• Compliance Remediation Advice: Assisting derivatives issuers in effectively addressing and rectifying compliance issues, from minor breaches to significant regulatory challenges, including warnings and action plans.
• Remediation Plan Development: Following the independent review, we assist in analysing the findings to identify necessary remedial actions. We then support derivatives issuers in devising a detailed plan outlining these actions for submission to your regulator or an AML/CFT supervisor, ensuring the plan is both actionable and compliant with regulatory expectations.
• Remediation Plan Commitment: We help derivatives issuers complete their remediation plans and prevent non-compliance recurrence.
• Executive Attestation Support: Our services include assisting senior executives in preparing the required attestations to your regulator. This involves confirming that all necessary remedial actions have been undertaken and adequate compliance measures are in place, supported by comprehensive documentation and evidence. This option covers assistance with the removal of any licensing restrictions.
• Further Information: For more information, you can visit our Compliance Remediation Solutions page.

 

 

Derivative Issuers’ Internal Controls Testing

When it comes to reality versus a nice policy or procedure with nothing else to show for it, it’s often a case where a policy says A, but reality says B. One might ask, why didn’t we test our internal controls before? Or, why didn’t we do it properly? There’s nothing worse than faking compliance instead of actually doing it.

Our second line of compliance defence solutions covers the development, testing, and enhancement of a wide range of controls to support compliance with various laws and regulations governing derivatives issuers' compliance obligations.

We go beyond merely quoting derivatives issuers' regulations or a selection of licensing requirements, then adding Excel sheets painted in different colours as a supposed source of truth with nothing to show for it.

• We test them.
• We link them to your risk appetite and core risk management documentation.
• We provide relevant suggestions and analysis tailored to your business.

Some of our focus areas for testing the derivatives issuers' compliance requirements include:

 

Regulatory Compliance and Licensing Controls

• Compliance Management Program: Derivatives issuers should have robust compliance management systems, including conflict of interest management and insider trading prevention measures.
• Liquidity Management: Licensed Derivatives Firms should ensure adequate liquidity to meet financial obligations promptly.
• Risk Management Framework: Derivative issuers should adhere to comprehensive risk management standards covering various risk types, ensuring robust risk frameworks are in place.
• Capital Adequacy: Businesses engaged in derivatives Issuers should maintain a certain level of tangible financial resources, including net assets or/and net tangible assets (NTA), with rules about where and how exactly the NTA should be maintained.
• Financial Auditing: Derivative issuers should engage qualified auditors to conduct regular financial audits to verify the accuracy of financial statements and ensure regulatory compliance.
• Regulated Counterparty Engagement: Financial institutions involved in derivatives trading should comply with restrictions on engaging in transactions with financial service providers that are not regulated or authorised by a competent authority.
• Cross-Border Application of Regulations: Derivatives issuers should comply with specific guidelines and rules regulating the cross-border application of national derivatives licensing requirements to overseas derivatives issuers offering services to their retail clients in their jurisdictions.
• Automated Trading Regulation: Firms specialising in derivatives issuance should adhere to rules for automated trading services, including provisions for algorithmic trading compliance, risk controls, and reporting requirements.
• Commodity Pool Operators and Commodity Trading Advisers Regulations: Licensed Derivatives Firms should follow specific regulations that apply to commodity pool operators (CPOs) and commodity trading advisers (CTAs) that guide collective investment structures in derivatives, including registration, disclosure, reporting, and record-keeping requirements.
• Digital Payment Token Services: Derivatives Issuers should comply with regulations for dealing with digital payment tokens, especially considering the rise of cryptocurrencies and digital assets, which may not be fully covered under traditional derivatives regulations.

 

Operational Oversight Controls

• Outsourcing Oversight: Derivative issuers should maintain control and oversight over outsourced functions to ensure they do not compromise regulatory obligations, clients’ information security, and more.
• Risk Management: Licensed derivatives firms should establish comprehensive risk frameworks and procedures to identify, assess, and manage operational and market risks.
• Governance Arrangements: Derivatives issuers should have effective governance structures in place to oversee operations and ensure responsible management and decision-making.
• Senior Management Accountability: Businesses engaged in derivatives issuance should assign specific responsibilities to senior managers to ensure accountability for conduct and competence.
• Operational Resilience: Derivatives Issuers should ensure the resilience of critical business services, planning for continuity amidst disruptions.
• Technology Risk Management: Derivatives trading firms should emphasise technology risk management, particularly in electronic trading or reliance on sophisticated IT systems, covering cybersecurity and system reliability requirements.

 

Market Integrity and Transparency Controls

• Market Conduct Standards: Derivatives issuers should ensure market conduct is fair, transparent, and free from abuse, including manipulation or insider trading.
• Fair Dealing Principles: Derivatives issuers should adhere to principles ensuring fair treatment of clients, with clear communication and transparent dealings.
• Conduct and Disclosure Standards: Licensed derivatives firms should maintain high standards of conduct and ensure that disclosures to their clients are clear, accurate, and effective.
• Service Provision Standards: Derivatives issuers should provide financial services efficiently, honestly, and fairly.
• Product Governance: firms specialising in derivatives issuance should have adequate arrangements for product design, approval, and review to meet regulatory requirements and client needs.
• Client Asset Protection: Derivatives issuers should protect client assets by segregating them from company funds, with clear rules on their use and handling.
• Dispute Resolution: Licensed derivatives firms should have proper mechanisms for dispute resolution and client compensation, especially for retail clients.

 

Resource Management Controls

• Resource Adequacy: Derivatives issuers should maintain adequate financial, technological, and human resources for effective operations.
• Professional Competence: Businesses engaged in derivatives issuance should ensure that key personnel possess the necessary competence, knowledge, and skills.
• Adviser and Representative Competence: Derivatives issuers should ensure that advisers and representatives providing financial services receive adequate training and demonstrate competence.

 

Derivatives Reporting Controls

• Market Transaction Derivative Reporting: Derivative issuers should report market transactions to the relevant authority or repository to support market transparency and oversight.
• Comprehensive Transaction Reporting: Licensed derivatives firms should provide detailed reporting of financial instrument transactions for market abuse monitoring and regulatory oversight.
• Regulatory Reporting: Derivatives issuers should regularly report to the relevant authority, detailing financial status, trading activities, compliance status, and more.
• Record-Keeping: Businesses engaged in derivatives issuance should maintain accurate records of all business transactions and financial matters for transparency and accountability under a range of laws applicable to derivatives issuers, including AML/CFT, tax, financial marketing laws, as well as derivatives issuer financial licensing requirements.

 

Product and Service Management Controls

• Product Suitability: Derivatives issuers should ensure that products offered are appropriate for clients, considering their knowledge, experience, and financial situation.
• Product Lifecycle Oversight: Firms specialising in derivatives issuance should have procedures in place for product lifecycle management, from design to distribution, ensuring client suitability and market integrity.
• Execution Quality: Derivatives issuers should take sufficient steps to ensure the best possible result for client orders, considering various execution factors.
• Data Protection and Privacy: Licensed derivatives firms are expected to adhere to robust data protection standards, aligning with national data protection laws for financial institutions.

 

Transactional Controls

• Centralised Clearing: Derivatives issuers should ensure that standardised OTC derivatives contracts are cleared through recognised central counterparties to mitigate systemic risk.
• Risk Mitigation for Non-Cleared Derivatives: Licensed derivatives firms should apply risk mitigation measures, including collateral exchange and dispute resolution, for non-centrally cleared derivatives.
• Swap Dealer and Major Swap Participant Regulations: Derivatives issuers should comply with national laws, such as the Dodd-Frank Act, which introduce specific regulatory requirements for swap dealers and major swap participants, including registration, capital and margin requirements, reporting, and business conduct standards.
• Position Limits and Accountability: Businesses engaged in derivatives issuance should adhere to national regulations covering established position limits for futures and options contracts on various commodities to prevent excessive speculation that could cause market distortions.
• Electronic Trading Risk Requirements: Derivatives issuers should manage risks posed by electronic trading systems, focusing on pre-trade risk controls, system safeguards, and other measures to enhance market integrity and resilience.

 

Derivatives Issuer Licensing Solutions

• Financial Licensing Application Support: We provide comprehensive support for a wide range of derivatives issuers’ licensing applications, including:
• Australian Financial Services Licence (AFSL) for Operating as a licensed Derivatives Issuer: We assist with the application process for an AFSL under the Corporations Act 2001, ensuring compliance with relevant guidance such as ASIC's Regulatory Guide 249, Regulatory Guide 251, Regulatory Guide 234, etc. For more information about our solutions to help you meet the Australian derivatives issuers' licensing requirements, please visit our ASFL page for derivatives issuers.
• Derivatives Issuer Licence in New Zealand under the Financial Markets Conduct Act 2013 (FMCA): We support the application process for a Derivatives Issuer Licence under the FMCA, ensuring compliance with the FMA's licensing criteria. For more information about our solutions to help you meet the New Zealand derivatives issuers' licensing requirements, please visit our FMA Licence page for derivatives issuers.
• UK Financial Conduct Authority (FCA) Authorisation for Derivatives Activities: We support the application process for FCA Authorisation under the Financial Services and Markets Act 2000 (FSMA) for derivatives activities, ensuring compliance with the relevant regulatory requirements. For more information about our solutions to help you meet the UK derivatives issuers' FCA authorisation requirements, please visit our FCA Authorisation page for derivatives issuers.
• Capital Markets Services Licensing in Singapore: We assist with the application process for a Capital Markets Services (CMS) Licence under the Securities and Futures Act (SFA), ensuring compliance with MAS regulations. For more information about our solutions to help you meet the Singaporean derivatives issuers' licensing requirements, please visit our Capital Markets Services (CMS) licensing page.
• Swap Dealer (SD) Licence, SEC Registration, and Futures Commission Merchant (FCM) Licence: We facilitate the application process for a Swap Dealer (SD) Licence and related registrations under the Commodity Exchange Act (CEA).
• Cayman Islands Monetary Authority (CIMA) Derivatives Issuer Licence: We provide guidance for the application process for a Derivatives Issuer Licence under the Securities Investment Business Law (SIBL) and Mutual Funds Law, ensuring compliance with CIMA's requirements.
• Bermuda Monetary Authority (BMA) Derivatives Issuer Registration: We assist with the application process for a Derivatives Issuer Registration under the Investment Business Act, ensuring compliance with BMA's regulatory requirements.
• British Virgin Islands Financial Services Commission (BVI FSC) Derivatives Issuer Licence: We support the application process for a Derivatives Issuer Licence under the Securities and Investment Business Act (SIBA), ensuring compliance with BVI FSC requirements.
• Other jurisdictions.

• International Governance Alignment: We provide strategic advice on aligning governance models for derivatives issuers operating across multiple jurisdictions to meet diverse regulatory expectations while maintaining operational efficiency and regulatory compliance.
• Further Information: Visit our Specialised Derivatives Issuers' Licensing Solutions page for more information.

 

 Core Policies and Procedures for Derivatives Issuers’ Compliance Management

• Compliance Policies and Core Documents: We develop, enhance, and implement a set of core policies, manuals, frameworks, and procedures for effective derivatives issuers' compliance management.
• Effective Procedures for Derivatives Issuer Compliance Management: We draft and enhance a detailed set of procedures and protocols to meet the distinct needs of your business, focusing on efficient compliance, your business goals, and applicable derivatives issuers' compliance requirements.
• Examples: These policies and procedures include, but are not limited to:

 

Operational Compliance

• Compliance Management Frameworks
• Compliance Monitoring Programs
• Compliance Calendars and Checklists
• Complaints Handling and Dispute Resolution Policies
• Compliance Training Manuals and Programs, as part of our regulatory compliance training solutions
• Obligation Registers
• Margin Account Negative Balance Write-Off Procedures
• Incident Reporting Policies and Procedures
• Outsourcing Policies and Vendor Risk Management policies as part of our outsourced provider's compliance management solutions
• New Client Account Opening Policies and Procedures, as part of our customer onboarding solutions

 

Governance and Oversight

• Board Charters, Risk, Audit and Compliance Committee Charters, as part of our corporate governance solutions
• Codes of Conduct
• Delegations Registers
• HR Manuals and Policies
• ESG Compliance Policies
• Conflict of Interest Policies

 

Risk Management

• Risk Management Frameworks as part of our risk management solutions
• Risk Assessment Guidelines and Methodologies
• Internal Control Testing Methodologies
• Risk Registers and specialised risk registers like Health and Safety Risk Registers
• Cybersecurity Risk Management Policies

 

Audit and Assurance

• Compliance Assurance Programs as part of our compliance assurance solutions
• Internal Audit Policies and Programs as part of our internal control testing solutions
• Regulatory Reporting Procedures

 

Client and Market Conduct

• Marketing and Advertising Policies
• Staff Dealing and Insider Trading Policies
• Margin Dealing Conduct Policies and Procedures
• Fair Lending Policies

 

AML/CFT and Financial Crime Compliance

• AML/CFT Compliance Programs
• AML/CFT Risk Assessment
• Whistleblowing Policies
• Sanctions Compliance policies and procedures
• Fraud Prevention Protocols and Controls as part of our fraud prevention solutions
• ABC Policies

 

Privacy and Data Management

• Client Data Protection Policies
• Record-keeping Policies and Procedures and/or Data Governance Policies as part of our record-keeping compliance solution
• External Privacy Policies
• Internal Data Protection Compliance Programs

 

Compliance Training and Capacity Building

We focus on practical compliance and the application of training to real-world compliance scenarios and challenges that derivatives issuers generally face. Our services include:

• Customised Compliance Training Solutions:  Specialised compliance training sessions for various teams, including management, compliance, operations, sales, and customer relations, focusing on derivatives issuers' regulations, applying derivatives issuers' compliance management practices to your circumstances, risk awareness, and more.
• Up-to-date Regulatory Compliance Updates:  Keeping compliance officers, managers, CROs, COOs, and other Risk and Compliance team members informed of changes in derivatives issuers' licensing requirements and regulations, AML/CFT updates, and changes in regulatory guidance.
• Data Analysis for Effective Compliance Monitoring: Covering training on compliance-related, data-based analysis and its results, including risk rating, internal control adjustments, resource and focus reallocation, and more.
• Workshops on Emerging AML Trends and Red Flags: Updating on the new AML trends, red flags, typologies, and AML/CFT requirements for derivatives issuers. For more information, please visit our AML/CFT Training Solutions page.
• Practical Workshops: Interactive workshops focused on effective and goal-oriented derivatives issuers' compliance, capacity planning, and resource allocation, covering:

• Derivatives issuers' regulations
• Internal and external compliance reporting
• Effective governance over risk and compliance functions
• Organisation-wide risk assessment, risk rating methodologies and the development, management, and testing of corresponding internal controls, including controls testing methodologies and practical techniques.
• Derivatives issuers' compliance reality, including outsourced provider monitoring, UAV management, incident management, product suitability assessments, advertising and marketing compliance, improvements in the client onboarding journey, transaction monitoring processes, and more.

• Further information: You can visit our Compliance Training Solutions page for more information on the compliance training services we offer to licensed financial institutions and financial service providers.

 

Derivatives Issuers and AML/CTF Compliance

We offer a complete set of solutions covering derivatives issuers' anti-money laundering (AML), financial crime and counter-terrorism financing (CTF) compliance. Our solutions include:

• Customer due diligence, screening, and customer onboarding solutions
• Development of transaction monitoring frameworks tailored to derivatives issuers' specific ML/TF red flags and your business specifications
• AML advisory covering derivatives market providers' compliance issues and challenges
• Drafting, testing, and updating AML policies and procedures
• AML training and capacity building
• Managed AML compliance solutions for derivatives issuers
• Internal and statutory AML/CFT audit solutions for derivatives issuers
• Financial crime prevention framework development focusing on common fraud risks faced by derivatives issuers.
• For more information, please visit our specialised AML/CFT Solutions page for Derivatives Issuers and Platforms

 

Derivatives Issuers’ Compliance Technology Integration

Our services cover compliance aspects concerning the integration of technology for risk and compliance e-management, transactional reporting (where applicable), usage of AI, technology outsourcing, and compliance aspects of third-party risk management for derivatives issuing businesses and platforms, including:

• Needs Assessment
• Compliance Technology Selection: Based on your budget, products, available operational and technical resources, and the applicable derivatives issuers' compliance obligations.
• Implementation assistance across the organisation
• Streamlining operational workflows: For routine compliance tasks like data collection, reporting, and risk assessments.
• AML/CFT Compliance Technology: Covering digital customer onboarding, E-KYC, PEP and sanctions screening, transaction monitoring, etc.
• Integration of derivatives issuers' compliance obligations into an effective CRM system.
• Record-Keeping Obligations: Helping you choose and integrate the necessary tools to comply with the record-keeping requirements under various laws and derivatives issuers' regulations.

 

Data Management and Information Privacy Solutions

• Data Governance and Compliance:  Assisting derivatives issuers in establishing robust data governance procedures, programs, and protocols that align data collection, storage, and usage practices with relevant data privacy regulations, such as GDPR, CCPA, and other applicable laws. These measures safeguard sensitive client and business information from unauthorised access, breaches, and misuse.
• Privacy Policy Compliance Monitoring: Helping you implement privacy policies that reflect the latest data protection legislation, supported by continuous compliance monitoring tools to maintain the highest data privacy standards.
• Record Maintenance Protocols:  We assist in developing and implementing effective procedures for maintaining necessary records, covering derivatives issuers' compliance with applicable regulatory reporting standards and derivatives reporting requirements.
• Record Availability and Inspection Readiness:  Derivatives issuers' regulations often require records to be readily available for inspection by regulators, AML/CFT supervisors, tax agencies, and other relevant authorities. This extends to information kept by your outsourced service providers. We help you organise your record-keeping processes to meet these needs.

 

ISO Standards and Derivatives Issuers’ Compliance

• Cross-Reference Mapping: Integrating ISO standards such as ISO 27001, ISO 9001, and ISO 22301 into an existing compliance framework and linking specific sections of ISO standards to corresponding procedures in your internal policies and procedures.
• Pre-Audit Preparation: Coordinating ISO controls testing across different parts of the business.
• Leading evidence collection across the different departments to cover relevant compliance areas such as planning, governance, organisational controls, operational controls, technological controls, and physical controls through structured workflows.
• Digital Compliance Repository: Helping you utilise a centralised digital repository for storing all compliance-related documents and evidence, making it easily accessible for audit purposes and compliance verification.
• ISO Audit Liaison:  Acting as a liaison between your team and the auditors, coordinating information requests, and ensuring all the necessary documentation is readily available.
• Post-Audit Remediation Management: We can lead the implementation of your remediation plan and support corrective actions to address all audit findings effectively.

 

Regulatory Change Management Solutions

Empower Your Business with Proactive Regulatory Change Management:

• Stay Ahead of the Curve:  We actively monitor regulatory updates from global financial authorities like MAS, ASIC, FMA, FCA, SEC, and other regulators for derivatives issuers' compliance changes and updates to evaluate the implications of regulatory changes.
• Impact Assessment and Mitigation Strategies: We analyse the potential impact of regulatory changes on derivatives issuers' compliance management frameworks and operational processes. We then collaborate with you to develop effective mitigation strategies that support continued compliance and minimise disruption.
• Seamless Implementation and Change Management:  We guide derivatives issuers through necessary process adjustments, update internal policies and procedures, facilitate a smooth transition through regulatory changes, and assist with effective communication with impacted stakeholders.