Specialised Solutions for Forex Brokers’ Compliance Management

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

• Your commercial objectives
• Your FX solutions and products
• 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 forex brokers' 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, forex brokers' obligations under privacy laws, anti-money laundering and counter-terrorist financing (AML/CFT) laws, fair trading laws, and more.
• Forex brokers' 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 forex market participants, including but not limited to:
  • Client due diligence and onboarding
  • Surveillance and monitoring
  • Recordkeeping
  • Conflict of interest management
  • Regulatory technology (RegTech) integration
  • Internal reporting
  • External reporting
  • Transaction execution
  • Regulatory Filings

 

 

What Jurisdictions Do Our Compliance Solutions Cover?

Our compliance solutions extend across major financial markets and cover forex brokers' regulations and forex brokers' licensing requirements in the following jurisdictions:

Offshore Jurisdictions 

• Belize: Where forex brokers are regulated by the International Financial Services Commission (IFSC). The IFSC requires forex brokers to obtain a licence under the IFSC Act.
• Cyprus: Where forex brokers are regulated by the Cyprus Securities and Exchange Commission (CySEC) and must obtain a licence as per the Investment Services and Activities and Regulated Markets Law. CySEC-regulated brokers can generally offer their services across the EU.
• Seychelles: Where the Seychelles Financial Services Authority (FSA) oversees forex brokers, requiring them to be licensed under the Securities Act 2007.
• Mauritius: Where forex brokers operating in Mauritius are regulated by the Financial Services Commission (FSC) and must obtain an Investment Dealer Licence as outlined in the Securities Act 2005 and the Financial Services Act 2007.
• Singapore: Where the Monetary Authority of Singapore (MAS) requires forex brokers to obtain a Capital Markets Services Licence, as stipulated by the Securities and Futures Act.
• Other offshore and low-tax jurisdictions.

Developed financial markets

• Australia: Where forex brokers must hold an Australian Securities and Investments Commission's (ASIC) regulations under the Corporations Act 2001.
• New Zealand: Where forex brokers are required to register as a Financial Service Provider (FSP) under the Financial Service Providers (Registration and Dispute Resolution) Act 2008. Managed by the Financial Service Providers Register (FSPR).
• United Kingdom: Where the Financial Conduct Authority (FCA) mandates forex brokers to obtain authorisation per the Financial Services and Markets Act 2000.
• United States: Where U.S. forex brokers must register as Retail Foreign Exchange Dealers (RFEDs) or Futures Commission Merchants (FCMs) under the Commodity Exchange Act, regulated by the Commodity Futures Trading Commission (CFTC) and adhere to the National Futures Association (NFA) membership requirements.

 

What Types of Forex Brokers Do We Support?

Our forex brokers' compliance solutions cover the following types of financial institutions:

• Retail Forex Brokers, which provide trading platforms to individual investors.
• Institutional Forex Brokers, which offer services to financial institutions, hedge funds, and large entities.
• STP (Straight-Through Processing) Forex Brokers, which act as intermediaries without taking the other side of the trade.
• ECN (Electronic Communication Network) Forex Brokers, which connect traders directly to liquidity providers.
• Market Maker Forex Brokers, which take the opposite side of clients’ trades.
• Multilateral Trading Facilities (MTFs), which facilitate exchanges between multiple forex trading parties.
• Algorithmic and High-Frequency Trading (HFT) Forex Brokers, which provide platforms for automated trading strategies.
• Forex Introducing Brokers (IBs), who refer clients to other forex brokers.

 

Forex Brokers’ Compliance Advisory

Our focus areas include:

• Detailed Compliance Advice: Covering FX brokers' compliance management issues across the first, second, and third lines, as well as matters related to effective compliance with financial markets regulations and forex brokers' 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 forex brokers' AML/CFT requirements.
• Operational Compliance Advice: Advising compliance, management, technology, and support teams on the day-to-day compliance with forex regulations, focusing on internal processes and critical internal controls for effective FX brokers' compliance management.
• Risk Management Advice: Covering risk rating and methodologies, risk assessments, management, and mitigation for various risk types faced by forex brokers, 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 forex brokers' 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 forex brokers' compliance obligations effectively, improve internal governance and reporting, and optimise them for market expansion and growth.
• Forex Brokers' Licensing Advice: We can guide you through the licensing process, help you apply regulations to your specific circumstances and business environment, and meet forex brokers' 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 Forex Brokers' Compliance Issues: We can help you resolve specific risk or compliance issues related to forex 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 forex brokers and other licensed financial institutions, financial services providers, and regulated businesses.

 

 

Reporting and Regulatory Liaison Solutions for Forex Brokers’ 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 forex brokers 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 forex brokers' 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 FX brokers' compliance management of reporting obligations under various laws and regulations, including submitting SAR, SMR, STR, PTR, TTR, specific reportable matters under the forex brokers' licensing requirements and other externally reportable transactions and activities.
• Internal Quality Assurance Reporting: While second-line control testing is crucial for complying with forex regulations, including forex brokers' 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 Forex Brokers

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

• FX Brokers' Compliance Management Leadership: We act as your Compliance Leads and Compliance Managers, fully managing compliance obligations under the applicable forex brokers' 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 forex 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 FX brokers' 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 forex brokers' 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 forex brokers' 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 forex brokers.
• 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 forex brokers' 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.
• Forex Brokers' 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 forex brokers' compliance obligations, including forex brokers' 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.

 

Forex Brokers’ 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 forex 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 forex brokers' compliance obligations, including forex brokers' licensing requirements. We also assess whether your internal controls effectively mitigate existing risks, including those required to be monitored under the applicable forex 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 forex brokers' 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 forex brokers 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 forex brokers 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 forex brokers 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.

 

 

Internal Controls Testing and FX Brokers’ Compliance Management

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 ensure compliance with various laws and regulations governing forex brokers' compliance obligations.

We go beyond merely quoting forex trading 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 forex brokers' compliance requirements include:

 

Regulatory Compliance and Licensing Controls

• Compliance Management: FX brokers are expected to have robust compliance frameworks to ensure adherence to forex trading regulations and client protection measures.
• Liquidity Management: Forex service providers should ensure sufficient liquidity to manage risks associated with high leverage and rapid market movements.
• Capital Adequacy: FX companies should maintain a certain level of capital to cover trading risks and operational costs, ensuring financial stability.
• Financial Auditing: When this is part of the regulatory regime, licensed FX providers should engage qualified auditors to conduct regular financial audits to verify financial stability, compliance with client fund segregation rules, and adherence to trading practices.
• Cross-Border Application of Regulations: Given the international scope of forex trading, FX businesses should comply with international regulations when offering services to clients in different jurisdictions.
• Global Data Protection Compliance: FX providers should implement controls to ensure compliance with global data protection regulations, such as GDPR in the EU, as well as comply with local privacy laws, including data privacy policies, secure data storage and transmission, and client consent mechanisms.
• Digital Payment Token Services: FX providers should comply with specific regulations for digital payment tokens, which may not be fully covered under traditional forex regulations.
• Leverage Regulation: FX brokers should ensure compliance with regulatory limits on leverage to protect clients and maintain market stability. This involves adhering to specific leverage caps set by regulatory bodies, monitoring client accounts to prevent excessive leverage, and educating clients about the risks associated with high leverage.
• Spread Management: Forex service providers should implement controls to manage and disclose spreads transparently, ensuring fair trading conditions for clients. This includes providing clear information about spread costs, maintaining competitive and consistent spreads, and using technology to monitor and adjust spreads in real-time to reflect market conditions.

 

Operational Oversight Controls

• Outsourcing Oversight: FX companies should maintain control and oversight over outsourced functions such as platform technology, liquidity provision, and client support services to ensure they do not compromise regulatory obligations, clients’ information security, and more.
• Risk Management: Forex service providers should establish comprehensive risk frameworks and procedures to identify, assess, and manage operational and market risks, including those associated with leverage, margin calls, and rapid market movements.
• Governance Arrangements: FX brokers should have effective governance structures in place to oversee operations and ensure responsible management and decision-making.
• Senior Management Accountability: FX providers should assign specific responsibilities to senior managers to ensure accountability for maintaining ethical trading practices and safeguarding client interests.
• Operational Resilience: FX brokers should ensure the resilience of critical business services, planning for continuity amidst disruptions.
• Technology Risk Management: FX companies should manage risks associated with trading platforms, cybersecurity threats, and ensure system integrity and reliability.
• Price Transparency and Slippage Control: FX brokers should implement controls to ensure transparency in price quoting and the execution of orders, minimising slippage under normal market conditions. This includes clear policies on order execution, particularly during volatile market periods.

 

Market Integrity and Transparency Controls

• Market Conduct Standards: Forex service providers should ensure market conduct is fair, transparent, and free from abuse, including manipulation or insider trading.
• Fair Dealing Principles: FX providers should adhere to principles ensuring fair treatment of clients, with clear communication and transparent dealings.
• Conduct and Disclosure Standards: FX companies should maintain high standards of conduct and ensure that disclosures to clients are clear, accurate, and effective.
• Service Provision Standards: FX brokers should provide financial services efficiently, honestly, and fairly.
• Product Governance: Forex service providers should have adequate arrangements for product design, approval, and review to ensure they meet regulatory requirements and client needs.
• Client Asset Protection: FX companies should protect client assets and segregate them from company funds, with clear rules on their use and handling.
• Dispute Resolution: FX providers should have proper mechanisms for dispute resolution and client compensation, especially for retail clients.
• Client Education and Risk Warning: FX brokers should strengthen controls around client education to include comprehensive risk warnings and educational resources about the forex market's volatility, the risks of leverage, and the complexity of forex products, ensuring clients make informed trading decisions.

 

Resource Management Controls

• Resource Adequacy: FX Providers should maintain sufficient resources for effective trading operations, client support, and compliance with regulatory obligations.
• Professional Competence: FX Companies should ensure that staff, especially those involved in trading and client advisory, are competent and adhere to professional standards.
• Adviser and Representative Competence: Forex Service Providers should ensure that staff providing trading advice or account management services are adequately trained and knowledgeable about forex markets and regulatory requirements.

 

Forex Broker’s Regulatory Reporting Controls

• Market Transaction Reporting: FX brokers should ensure accurate reporting of trades as required for regulatory oversight, market transparency, and AML compliance.
• Comprehensive Transaction Reporting: FX providers should maintain detailed reporting of client transactions and positions for compliance and risk management purposes.
• Regulatory Filings: Forex service providers should conduct regular reporting to authorities on trading volumes, client exposures, compliance with leverage limits, and AML/CFT requirements periodically and on an ad-hoc basis, including specific reports such as SMR, STR, PTR, TTR, SAR reports and similar.
• Record-Keeping: Forex service providers should maintain accurate records of client trades, account balances, and communications to ensure compliance and effective dispute resolution under various regulatory requirements.
• Client Reporting and Performance Disclosure: FX brokers should establish guidelines for regular client reporting that include account performance, fees and charges, and any significant changes to trading conditions or margin requirements, enhancing transparency and client trust.
• FATCA and CRS Compliance: Forex service providers should implement controls to ensure adherence to FATCA and CRS requirements, involving conducting due diligence on account holders to identify reportable accounts, collecting and verifying tax residency information, and reporting relevant financial information to the appropriate tax authorities or through domestic regulatory channels.

 

Product and Service Management Controls

• Product Suitability: FX providers should ensure products offered are appropriate for clients, considering their knowledge, experience, and financial situation.
• Product Lifecycle Oversight: Forex service providers should establish procedures for product lifecycle management, from design to distribution, ensuring client suitability and market integrity.
• Execution Quality: Forex service providers should take sufficient steps to ensure the best possible result for client orders, considering various execution factors.
• Data Protection and Privacy: FX companies should adhere to robust data protection standards, aligning with national data protection laws for financial institutions.

 

Transactional Controls and Trade Execution Compliance for Forex Brokers

• Best Execution Oversight: FX providers should ensure that client orders are executed at the best available prices, considering market conditions and execution policies.
• Authorisation and Verification Procedures: Forex service providers should verify client identities, trading authorisations, and ensure compliance with AML/KYC requirements.
• Conflict of Interest in Transactions: Forex service providers should identify and manage conflicts of interest, particularly in pricing, order execution, and proprietary trading.
• Monitoring of Leveraged and Complex Transactions: FX providers should oversee leverage usage and complex trading strategies to ensure they align with client risk profiles and regulatory limits.
• Periodic Review and Reconciliation: Forex service providers should conduct regular reviews of trading activities, account balances, and client exposures to ensure accuracy, compliance with trading conditions, and effective risk management.
• Negative Balance Protection: FX companies should introduce controls to provide negative balance protection for retail clients, ensuring they cannot lose more than their deposited funds, in line with best practices and regulatory requirements in certain jurisdictions.
• Trade Reporting and Transparency: Forex service providers should ensure that all trades are reported accurately and in a timely manner to relevant regulatory bodies. Transparency in transaction reporting is essential for maintaining market integrity.
• Client Order Handling: FX providers should have clear policies for handling client orders, ensuring that orders are executed promptly and in the best interest of clients. This includes managing order aggregation, priority, and execution fairness.
• Slippage and Requote Management: Forex service providers should implement controls to manage slippage and requotes effectively. Clients should be informed about potential slippage and the circumstances under which requotes might occur, maintaining transparency in trading conditions.
• Margin and Leverage Monitoring: FX companies should continuously monitor client margin levels and leverage usage to prevent margin calls and forced liquidations. This includes setting appropriate margin requirements and providing clients with real-time margin information.
• Automated Trading Supervision: Forex service providers should supervise automated trading systems (such as Expert Advisors) used by clients to ensure they operate within set parameters and comply with regulatory requirements. Monitoring automated trades helps prevent market abuse and ensures adherence to trading rules.
• Client Communication and Disclosures: FX providers should ensure clear and timely communication with clients regarding transaction confirmations, changes in account status, and any significant events that might affect trading conditions. Transparency in communication helps build trust and ensures clients are well-informed.
• Risk Warnings and Disclosures: Forex service providers should provide clients with clear risk warnings about the potential risks of forex trading, including the use of leverage and the possibility of losing more than the initial investment. Proper risk disclosure helps clients make informed trading decisions.

 

 

 Licensing Solutions for Forex Brokers

• Financial Licensing Application Support: We provide comprehensive support for a wide range of licensing applications for forex brokers, including:

• International Governance Alignment: We provide strategic advice on aligning governance models for forex brokers operating across multiple jurisdictions to meet diverse regulatory expectations while maintaining operational efficiency and regulatory compliance.

 

Policies and Procedures for FX Brokers’ Compliance Management

• Compliance Policies and Core Documents: We develop, enhance, and implement a set of core policies, manuals, frameworks, and procedures for effective FX brokers' compliance management.
• Effective Procedures for FX Brokers' 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 forex brokers' 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
• Spread Management Policies
• Price Transparency and Slippage Control Policies
• 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
• Leverage Regulation Policies
• Algorithmic and HFT Trading Oversight 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

 

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 forex brokerage platforms 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 forex regulations, applying FX brokers' 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 forex brokers' 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 new AML trends, red flags, typologies, and AML/CFT requirements for forex brokers. For more information, please visit our AML/CFT Training Solutions page.
• Practical Workshops: Interactive workshops focused on effective and goal-oriented forex brokers' compliance, capacity planning, and resource allocation, covering:

• Forex Brokers' 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.
• Forex brokers' 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.

 

 

Forex Brokers and AML/CTF Compliance

We offer a complete set of solutions covering forex brokers' 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 forex brokers' specific ML/TF red flags and your business specifications
• AML advisory covering forex brokers' compliance issues and challenges
• Drafting, testing, and updating AML policies and procedures
• AML training and capacity building
• Managed AML compliance solutions for forex providers
• Internal and statutory AML audit solutions for forex brokers
• Financial crime prevention framework development focusing on common fraud risks faced by forex brokerage platforms
• For more information, please visit our specialised AML Compliance Solutions page for Brokers

 

Forex Brokers’ 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 forex brokers, including:

• Needs Assessment
• Compliance Technology Selection: Based on your budget, products, available operational and technical resources, and the applicable forex brokers' 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 customer digital onboarding, E-KYC, PEP and sanctions screening, transaction monitoring, etc.
• Integration of forex brokers' 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 forex regulations

 

Data Management and Information Privacy Solutions

• Data Governance and Compliance:  Assisting forex brokerage platforms 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 forex brokers' compliance with applicable regulatory reporting standards and reporting requirements.
• Record Availability and Inspection Readiness:  Forex brokers' 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 Forex Brokers’ 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 forex brokers' 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 FX brokers' 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 forex brokers through necessary process adjustments, update internal policies and procedures, facilitate a smooth transition through regulatory changes, and assist with effective communication with impacted stakeholders.