Specialised Solutions for Investment Firms’ Compliance Management

 

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

• Your commercial objectives
• Your investment options and solutions
• Your business goals
• Your business size
• Your technology and human resources
• Your risk appetite
• Your governance structure
• Your client demographics
• Your countries of operation, their applicable laws, relevant investment firm licensing requirements, such as outsourced providers' review, compliance training, risk management requirements, etc.
• Any related compliance obligations, including, but not limited to, investment firms’ obligations under privacy laws, anti-money laundering and counter-terrorist financing (AML/CFT) laws, fair trading laws, and more.
• Investment firms’ compliance assurance obligations include 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 investment firms, 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
  • FATCA and CRS compliance obligations

 

What Jurisdictions Do Our Compliance Solutions Cover?

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

• Australia: Where the investment firms' licensing requirements for offering services to retail clients are set under the  Corporations Act 2001 with the Australian Securities and Investments Commission's supervised by the Australian Securities and Investments Commission (ASIC). Investment firms providing services to wholesale clients must comply with registration requirements under the AML/CTF Act 2006 with AUSTRAC.
• United States: Where the investment firms' licensing requirements for providing investment advice to retail clients are set under the Investment Advisers Act of 1940, with registration supervised by the Securities and Exchange Commission (SEC). Investment firms offering services to wholesale clients must comply with relevant state regulations.
• United Kingdom: Where the investment firms' licensing requirements for offering services to retail clients are set under the Financial Services and Markets Act 2000 with authorisation from the Financial Conduct Authority. Investment firms dealing with professional clients or eligible counterparties must still obtain FCA authorisation to operate.
• Singapore: Where the investment firms' licensing requirements for fund management activities to retail clients are set under the Securities and Futures Act with the Capital Markets Services Licence supervised by the Monetary Authority of Singapore (Mas). Investment firms servicing accredited investors or institutional clients must adhere to AML/CFT regulations.
• New Zealand: Where the investment firms' licensing requirements for offering services to retail clients are set under the Financial Markets Conduct Act 2013 with registration on the Financial Service Providers Register (FSPR) and may need a Managed Investment Scheme (MIS) Manager Licence supervised by the Financial Markets Authority (FMA). Investment firms offering services to wholesale clients must comply with AML/CFT obligations under the AML/CFT Act 2009.
• European Union: Where the investment firms' licensing requirements for offering services to retail clients are set under the Markets in Financial Instruments Directive (MiFID II) with authorisation from national regulators and adhering to strict conduct and disclosure standards. Investment firms dealing with professional clients or eligible counterparties must still obtain necessary authorisations and meet specific compliance standards.
• Offshore Jurisdictions:
  • Cayman Islands: Where the investment firms' licensing requirements for providing services to high-net-worth individuals and institutional investors are set under the Securities Investment Business Law (SIBL) supervised by the Cayman Islands Monetary Authority (CIMA).
  • Bermuda: Where the investment firms' licensing requirements for providing services to high-net-worth individuals and institutional investors are set under the Investment Business Act supervised by the Bermuda Monetary Authority (BMA).
  • British Virgin Islands (BVI): Where the investment firms' licensing requirements for providing services to high-net-worth individuals and institutional investors are set under the Securities and Investment Business Act (SIBA) supervised by the British Virgin Islands Financial Services Commission (BVI FSC).
  • Isle of Man: Where the investment firms' licensing requirements for providing services to high-net-worth individuals and institutional investors are set under the Financial Services Act 2008, supervised by the Isle of Man Financial Services Authority (IOMFSA).

 

What Types of Investment Firms Do We Support?

Our investment firms' compliance solutions cover the following types of investment advisory services:

• Independent Investment Firms: Providing tailored compliance solutions to independent investment firms, ensuring they meet all regulatory requirements and maintain robust compliance frameworks.
• Registered Investment Firms: Offering comprehensive compliance solutions for registered investment firms to manage assets and portfolios in line with SEC regulations, including AML/CFT compliance and client due diligence.
• Investment Advisory Firms: Ensuring compliance for firms specialising in investment advisory services, asset management, and financial planning for retail clients.
• Portfolio Management Compliance: Offering compliance solutions for portfolio management firms, ensuring that all financial products and services meet regulatory standards.
• Broker-Dealers: Ensuring compliance with regulatory standards for firms that act as both investment advisers and broker-dealers, particularly in the equity and debt securities industry.
• Wealth Management Compliance: Providing compliance solutions for wealth management firms, focusing on high-net-worth individuals and family office compliance.
• Private Equity Firms: Offering compliance solutions for private equity firms, focusing on investment firm compliance and portfolio management compliance.
• Family Office Compliance: Assisting family offices in meeting regulatory requirements and implementing effective compliance management systems.

 

Investment Firms’ Compliance Advisory

Our services include:

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

 

 

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

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

• Investment Firms' Compliance Management Leadership: We act as your Compliance Leads and Compliance Managers, fully managing compliance obligations under the applicable investment firms' 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 investment 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 investment firms' 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 investment firms' 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 investment firms' 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 investment firms.
• 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 investment firms’ 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.
• Investment Firms' 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 investment firms' compliance obligations, including investment firms' 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.

 

Investment Firms’ 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 investment 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 investment firms' compliance obligations, including investment firms' licensing requirements. We also assess whether your internal controls effectively mitigate existing risks, including those required to be monitored under the applicable investment 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 investment firms' 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 investment firms 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 investment firms 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 investment firms 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 Investment Firms’ 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 investment firms' compliance obligations.

We go beyond merely quoting investment 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 investment firms' compliance requirements include:

Regulatory Compliance and Licensing Controls

• Compliance Management: Investment firms should have robust compliance management systems, including conflict of interest management and insider trading prevention measures. This is particularly important for ensuring adherence to financial advisory and portfolio management regulations.
• Liquidity Management: Firms managing client funds directly or offering products requiring liquidity management should maintain adequate liquidity obligations to meet their financial obligations promptly.
• Risk Management Framework: Investment managers should adhere to comprehensive risk management standards covering various risk types, ensuring robust risk frameworks are in place. This includes managing investment, operational, and compliance risks effectively.
• Capital Adequacy: To absorb potential losses, a certain level of tangible financial resources, including net assets or/and net tangible assets (NTA), should be maintained, with rules about where and how exactly the NTA should be maintained. Investment management firms may need to maintain minimum capital levels, particularly under MiFID II in the E.U.
• Financial Auditing:  Licensed investment management Firms should engage qualified auditors to verify the accuracy of financial statements and regulatory compliance with applicable Investment Management Firms' licensing requirements and regulations.
• Cross-Border Application of Regulations: Compliance with international regulations and standards is required when managing investments or advising clients across borders.
• Digital Payment Token Services: Investment management firms dealing with digital payment tokens should comply with the regulations for cryptocurrencies and digital assets. While these may not be fully covered under traditional financial laws and regulations that deal with a definition of a financial product., the growing investment of third-party funds in this sector and its self-regulation has already created rules and expectations for managing crypto investments.
• Sanctions Compliance: Investment management firms should ensure adherence to economic and trade sanctions.

 

Operational Oversight Controls

• Outsourcing Oversight: Investment management firms should maintain control and oversight over outsourced functions to ensure they do not compromise regulatory obligations, clients' information security, and more. This involves oversight of outsourced functions such as investment analysis, client reporting, and I.T. services.
• Risk Management: Comprehensive risk frameworks and procedures should be established to identify, assess, and manage operational and market risks. Licensed Investment Management Firms should manage investment, operational, and compliance risks effectively.
• Governance Arrangements: Effective governance structures should be in place to oversee operations and ensure responsible management and decision-making. This is essential for decision-making and overseeing investment processes.
• Senior Management Accountability: Specific responsibilities should be assigned to senior managers to ensure accountability for conduct and competence, covering compliance, investment performance, and client relations.
• Operational Resilience: Investment management firms should ensure the resilience of critical business services, planning for continuity amidst disruptions. Continuity plans for critical operations like trading, client advisory, and fund management are essential.
• Technology Risk Management:  Money managing businesses should manage risks associated with trading platforms, client data management, and cybersecurity.
• Environmental, Social, and Governance (ESG) Considerations: Investment management firms are increasingly incorporating ESG factors into their investment decisions. Adding controls to ensure the integration of ESG considerations in investment analysis, decision-making processes, and client reporting could enhance compliance with emerging regulatory expectations and investor demands.
• Business Conduct:  Money managing businesses should maintain high ethical standards and avoid conflicts of interest.

 

Market Integrity and Transparency Controls

• Market Conduct Standards: Investment management firms should ensure market conduct is fair, transparent, and free from abuse, including manipulation or insider trading. This involves ensuring ethical conduct in trading, investment advice, and client interactions.
• Fair Dealing Principles: Money managing businesses should adhere to principles ensuring fair treatment of clients, with clear communication and transparent dealings. This includes principles to ensure fair treatment of clients, transparent fee structures, and clear communication of investment strategies.
• Conduct and Disclosure Standards: Investment management firms should maintain high standards of conduct and ensure that disclosures to their clients are clear, accurate, and effective. This involves maintaining high standards for disclosures to clients about investment risks, strategies, and costs.
• Service Provision Standards: Financial services should be provided efficiently, honestly, and fairly. Investment services must be provided efficiently, honestly, and in the clients' best interests.
• Client Asset Protection:  Money managing businesses should be protect and segregate client's money and other assets from company funds, with clear rules on their use and handling. This includes safeguards for client assets under management, including segregation of funds and adherence to custody rules.
• Dispute Resolution: Proper mechanisms for dispute resolution and client compensation should be in place, especially for retail clients.

 

Resource Management Controls

• Resource Adequacy: Money managing businesses should maintain adequate financial, technological, and human resources for effective operations.
• Professional Competence: Investment businesses should ensure that their key personnel possess the necessary competence, knowledge, and skills.
• Advisor and Representative Competence: Advisors and representatives providing financial services should receive adequate training and demonstrate competence. Staff providing investment advice must be adequately trained, qualified, and compliant with continuing education requirements.
• Client Onboarding and Know Your Customer (KYC): Investment management firms subject to AML/CTF laws should have controls around client onboarding, including thorough CDD, EDD, KYC, and transactional monitoring and reporting procedures, and allocate enough resources to AML/CFT compliance. This ensures compliance with anti-money laundering (AML) regulations and helps firms better understand client investment objectives and risk tolerance.
• Custody Arrangements: Some licensed investment management firms (like MIS managers) should establish controls to select, monitor, and oversee qualified custodians for safekeeping client assets.

 

Reporting Controls

• Transaction Reporting: Some investment management firms should comply with regulatory requirements for accurate and timely reporting of transactions, which is essential for supporting market transparency and oversight.
• Comprehensive Transaction Reporting: Investment management firms should ensure detailed reporting of client transactions and portfolio performance to clients and regulators to maintain transparency and trust.
• Regulatory Reporting: Investment businesses should conduct regular reporting to authorities on compliance, risk management, and client asset management to ensure adherence to regulatory standards.
• Record-Keeping: Investment businesses should maintain accurate records of investment decisions, client interactions, and transactions to comply with legal and regulatory obligations.

 

Product and Service Management Controls

• Product Suitability: Investment management firms should ensure that products offered are appropriate for clients, considering their knowledge, experience, and financial situation.
• Product Lifecycle Oversight: Investment businesses should have procedures in place for product lifecycle management, from design to distribution, ensuring client suitability and market integrity.
• Execution Quality: Investment management firms should take sufficient steps to ensure the best possible result for client orders, considering various execution factors.
• Data Protection and Privacy: Investment management firms should adhere to robust data protection standards that align with national data protection laws for financial institutions.
• Accessibility and Inclusivity: Investment management firms should implement controls to ensure that products and services are accessible to a wide range of customers, including those with disabilities, aligning with broader social responsibility goals.

 

Transactional Controls

• Trade Order Management: Investment management firms should ensure accurate and compliant execution of client trade orders.
• Settlement Controls: Investment businesses should ensure timely settlement of client trades.
• Transaction Cost Management: Investment businesses should manage and monitor transaction costs for clients.
• Record-Keeping: Investment management firms should maintain accurate records of client assets and transactions.
• Algorithmic Trading and High-Frequency Trading (HFT) Oversight: For investment management firms engaged in algorithmic trading or HFT, implementing controls to monitor and manage risks associated with these activities is crucial. This includes ensuring compliance with market conduct rules, maintaining system integrity, and preventing market abuse.

 

Cybersecurity and Data Protection

• Cybersecurity Measures: Investment businesses should protect against unauthorised access, data breaches, and ensure information integrity and confidentiality.
• Data Protection Compliance: Investment management firms should ensure compliance with data protection laws for data collection, storage, processing, and sharing, as well as data privacy regulations like GDPR and CCPA.

 

Licensing and Registration Solutions for Investment Firms

 

• Financial Licensing Application Support: We provide investment firms with comprehensive support for a wide range of licensing applications, as well as the necessary support for wholesale market-oriented firms, including:
• Australian Investment Firms' Licensing Requirements: We guide firms through the AFSL application process with ASIC, tailored for investment services to retail clients, ensuring compliance with the Corporations Act 2001.
• New Zealand Investment Firms' Licensing Requirements: We facilitate FSPR registration and MIS Manager Licence applications for investment firms, ensuring compliance with the Financial Markets Conduct Act 2013 (FMCA).
• U.K. Investment Firms' Authorisation Requirements: We assist with obtaining FCA authorisation, covering the full spectrum of investment services under the Financial Services and Markets Act 2000 (FSMA).
• U.S. Investment Firms' Licensing Requirements: We offer support for SEC registration under the Investment Advisers Act of 1940, including state-level compliance for investment services to retail clients. We also assist investment firms in meeting state-level licensing requirements and complying with relevant state regulations to provide investment advice to wholesale clients.
• E.U. Investment Firms' Compliance Requirements: We provide advisory services to ensure MiFID II compliance for investment firms in the E.U., helping them obtain the necessary national authorisations for services to retail clients.
• Singaporean Investment Firms' Licensing Requirements: We help investment firms in Singapore obtain the necessary Capital Markets Services Licence from MAS for fund management activities under the Securities and Futures Act. We also guide firms in adhering to licensing requirements for services to accredited investors or institutional clients under the Securities and Futures Act.
• Offshore Registers Investment Firms' Jurisdictions Licensing and Registration Solutions:

• The Cayman Islands Investment Business Licensing: We support investment firms in obtaining licences under the Securities Investment Business Law (SIBL), supervised by the Cayman Islands Monetary Authority (CIMA), for providing services to retail clients and registering services for high-net-worth individuals and institutional investors.
• Bermuda Investment Business Licensing: We facilitate the licensing process under the Investment Business Act, supervised by the Bermuda Monetary Authority (BMA), for providing services to retail clients and registering services for high-net-worth individuals and institutional investors.
• BVI Investment Business Licensing: We assist with obtaining licences under the Securities and Investment Business Act (SIBA), supervised by the British Virgin Islands Financial Services Commission (BVI FSC), for providing services to retail clients and registering services for high-net-worth individuals and institutional investors.
• Isle of Man Investment Business Licensing: We provide support for licensing under the Financial Services Act 2008, supervised by the Isle of Man Financial Services Authority (IOMFSA), for providing services to retail clients and registering services for high-net-worth individuals and institutional investors.

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

 

Policies and Procedures for Investment Firms’ Compliance Management

• Compliance Policies and Core Documents: We develop, enhance, and implement a set of core policies, manuals, frameworks, and procedures for effective investment firms' compliance management.
• Effective Procedures for Investment Firm 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 investment firms' 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
• Portfolio Management Procedures
• Technology Integration Policies for Regulatory Compliance
• Cross-Border Transaction Reporting Policies

 

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
• RegTech Solutions Implementation Guidelines

 

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 Reporting Standards

 

Client and Market Conduct

• Client Suitability Assessment Procedures
• Marketing and Advertising Policy
• Margin Dealing Conduct Policy and Procedures
• Fair Lending Policy
• Wealth Management Service Standards
• High-Net-Worth Individual (HNWI) Client Management 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
• CRS and FATCA Compliance Programs

 

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 investment firms 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 investment regulations, applying investment firms' 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 investment firms' 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 investment firms. For more information, please visit our AML/CFT Training Solutions page.
• Practical Workshops: Interactive workshops focused on effective and goal-oriented investment firms' compliance, capacity planning, and resource allocation, covering:

• Investment 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.
• Investment firms' 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.

 

Investment Firms and AML/CTF Compliance

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

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

Investment Firms’ 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 investment firms, including:

• Needs Assessment
• Compliance Technology Selection: Based on your budget, products, available operational and technical resources, and the applicable investment firms' 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 investment firms' 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 investment regulations

 

Data Management and Information Privacy Solutions

• Data Governance and Compliance:  Assisting investment firms 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 investment firms' compliance with applicable regulatory reporting standards and reporting requirements.
• Record Availability and Inspection Readiness:  Investment 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 Investment Firms’ 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 investment firms' 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 investment firms' 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 investment firms through necessary process adjustments, update internal policies and procedures, facilitate a smooth transition through regulatory changes, and assist with effective communication with impacted stakeholders.