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Regulatory Compliance & Audit

for Asset Managers

Navigating the complex and ever-changing regulatory landscape is a challenge.

Failure to stay current can lead to regulatory fines, reputational damage and unnecessary costs, but compliance efforts can drain resources.

Our team offers program analysis, improvement recommendations and implementation guidelines to help you meet regulatory requirements and conform with industry best practices—without detracting from your business operations. The result will be a compliance program customized for your unique organizational structure and stakeholder expectations.

Proprietary Services
ACTIVUS Exam Remediation Program
Asset Managers

Positive results are never guaranteed in any regulatory examination. The type of exam—routine, sweep or cause—often determines the scope of review and level of scrutiny. Even with the best intentions, your organization can fall short of its regulatory obligations because of a lack of resources, the unexpected departure of your Chief Compliance Officer, high turnover among compliance staff and/or failed coordination among internal stakeholders. Regardless of the cause, regulators may identify material deficiencies and control weaknesses that can lead to:

  • Significant fines and penalties
  • Enforcement division referral and action
  • Investor withdrawals
  • Loss of investor confidence
  • Reputational damage
  • Low employee morale.

Through our proprietary ACTIVUS Exam Remediation Program, we support organizations during, and directly following, a regulatory exam—we will work with you to:

  • Quickly remediate exam findings and deficiencies
  • Significantly reduce liability during a follow-up exam
  • Demonstrate a strong commitment to ongoing compliance
  • Re-establish “Tone at the Top” and your management’s commitment to a strong Culture of Compliance
  • Restore stakeholders’ confidence in management’s ability to effectively manage applicable legal, regulatory, compliance and governance risks.

We focus on building a comprehensive and effective control
environment that includes the following components:

Comprehensive Risk Assessments

Many organizations lack a core methodology for identifying risks and determining their potential impact. We offer Compliance Risk Assessments that will be tailored to your needs. Our team can help you uncover legal and/or regulatory compliance risks that could impact management’s ability to achieve strategic objectives.

Tailored Written Policies & Procedures

A robust, effective compliance program has written policies and procedures (WPPs) that describe acceptable behaviors and business practices for covered individuals and entities. WPPs must be clear, concise and capable of being followed on a regular and consistent basis across the entire organization.

Our experts can work with you to design WPPs that are practical and commercial—helping you to prevent, detect and correct securities law violations while also achieving strategic objectives.

Dynamic Monitoring & Forensic Testing Programs

For a compliance program to remain effective, it must be reviewed and monitored on an ongoing basis. Forensic testing is an essential component of these reviews. Our specialists have designed and implemented monitoring and testing programs at some of the world’s largest global banks, private funds, investment advisers and regulatory bodies—we can:

  • Review the scope and diversity of your monitoring and testing program to ensure alignment with the size and complexity of your business activities
  • Formulate a balanced mix of transactional, periodic and forensic tests designed to detect and prevent legal and regulatory violations
  • Recommend enhancements to existing programs based on new regulatory developments, industry best practices and emerging risks.
Robust Annual Compliance Reviews

Registered investment companies and advisers are required to review the adequacy of their compliance policies and procedures, and the effectiveness of their implementation, at least annually. Our team conducts independent Rule 206(4)-7 and Rule 380-1 annual compliance reviews with minimal business disruption. At the same time, we gather and compile relevant supporting documentation and prepare a written report to provide transparency and assurance of the independent review to your key stakeholders.

Customized Compliance Training & Education

The practical application of compliance rules and regulations varies between and among an organization’s business units, employees and affiliates. That’s why we created THE PRACTICAL CCO—our proprietary training program that helps organizations deliver, document and maximize the impact of their training initiatives. Your compliance training program will be comprehensive, efficient and practical, as well as tailored to the responsibilities and business activities of:

  • Newly hired employees
  • New analysts/ associates (private funds/banks)
  • C-suite executives and senior management
  • Managers and supervisors
  • Employees (firm-wide annual training)
  • Board committees and directors
  • Consultants and other non-employees.
Regulatory Impact Analysis

In addition to complying with existing regulations, many organizations are under increasing pressure from regulators and other stakeholders to predict and plan for what’s next. Our team’s industry expertise helps organizations like yours prepare for the future—we will:

  • Identify new and proposed regulations that can potentially impact your organization
  • Develop an internal system to monitor regulatory deadlines and determine when action is required
  • Monitor and document what actions your organization takes to meet regulator and investor reporting requirements.
Compliance Program Design & Implementation

An effective compliance program must meet the needs of both internal and external stakeholders. Our team’s extensive experience in designing compliance programs has helped our clients assess, and where necessary strengthen, their Culture of Compliance. We work with management to establish a “Tone at the Top” consistent with the expectations of regulators and other key stakeholders. Most important, we help develop and implement a robust Control Environment that is transparent and in keeping with regulatory and stakeholder disclosures—we provide:

  • Comprehensive risk assessments
  • Tailored policies and procedures
  • Dynamic monitoring and testing programs
  • Robust annual review processes
  • Customized compliance training.
Compliance Program Audits

Establishing and implementing an effective compliance program is crucial to the ongoing success of your regulated business. Monitoring and updating it is challenging in the face of new and competing business interests and/or constrained resources. You can rely on our skilled professionals to help you demonstrate to key stakeholders that your compliance program is aligned with your strategic objectives and that it contains all the required elements —we will:

  • Quickly and accurately identify gaps and weaknesses in an existing program
  • Recommend enhancements to plug holes and limit exposure
  • Help develop methodologies to identify and audit new and emerging compliance and legal risks.
Mock Regulatory Examinations

Preparing for regulatory examinations is essential. Our professionals have managed hundreds of SEC, FINRA and state regulatory examinations for all types of asset managers. We will help your organization prepare by developing the “Foundation Documents” that are critical to the success of any regulatory examination. Furthermore, before the regulators arrive, we will review your compliance policies, operating procedures, organizational documents, offering documents and marketing materials to identify inconsistencies, red flags and potential deficiencies. We will also conduct staff interviews to help management and key employees prepare for the rigors of an actual exam. We then provide practical feedback to management and in-house compliance professionals so that they may proceed with confidence on the first day of any exam.

Onsite SEC Exam Support

Onsite SEC exams can be a drain on resources. Volumes of documentation must be produced in advance. Once the regulator is onsite, your Chief Compliance Officer and other staff are under intense pressure as they comply with information requests while continuing to handle their day-to-day responsibilities. Having managed and led hundreds of actual regulatory exams, our professionals understand what it takes to manage the exam process—we provide practical onsite support to help you:

  • Identify the nature and scope of a regulatory examination (routine, cause, sweep, etc.)
  • Narrow the scope of an examination
  • Review and respond to specific information requests
  • Remediate preliminary findings and deficiencies
  • Conduct exit interviews with examination staff
  • Negotiate final findings and deficiencies
  • Prepare written responses to findings of deficiencies and violations
  • Develop, implement and track corrective action plans
  • Identify and comply with key stakeholder disclosure requirements.
Outsourced CCO Services

Hiring a professional Chief Compliance Officer (CCO) may not make sense for your organization. And even if you decide to hire, it could take a long time to find someone who is the right fit. Whether you need a long-term CCO solution or short-term CCO support services, our experienced and highly skilled professionals may be your answer—we can:

Design, implement and monitor an effective compliance control environment that includes: tailored written policies and procedures, dynamic monitoring and testing programs, robust Rule 206(4)-7 annual reviews and customized compliance training that targets different roles and functions across your organization.

Prepare detailed quarterly compliance reports for senior management and C-suite executives, as well as board directors and trustees, that summarize compliance monitoring activities, compliance violations, new regulatory developments, applicable policy and procedure changes and other relevant compliance matters.

Other services include, but are not limited to:

  • Ongoing review of marketing materials
  • Quarterly code of ethics report reviews and testing
  • Preparation of form ADV filings and updates
  • Managing compliance reporting requirements for sub-advisers and fund administrators
  • Onsite diligence reviews of key vendors and third-party service providers, including custodians and fund administrators
  • SEC exam support.

Many organizations lack a core methodology for identifying risks and determining their potential impact. We offer Compliance Risk Assessments that will be tailored to your needs. Our team can help you uncover legal and/or regulatory compliance risks that could impact management’s ability to achieve strategic objectives.

A robust, effective compliance program has written policies and procedures (WPPs) that describe acceptable behaviors and business practices for covered individuals and entities. WPPs must be clear, concise and capable of being followed on a regular and consistent basis across the entire organization.

Our experts can work with you to design WPPs that are practical and commercial—helping you to prevent, detect and correct securities law violations while also achieving strategic objectives.

For a compliance program to remain effective, it must be reviewed and monitored on an ongoing basis. Forensic testing is an essential component of these reviews. Our specialists have designed and implemented monitoring and testing programs at some of the world’s largest global banks, private funds, investment advisers and regulatory bodies—we can:

  • Review the scope and diversity of your monitoring and testing program to ensure alignment with the size and complexity of your business activities
  • Formulate a balanced mix of transactional, periodic and forensic tests designed to detect and prevent legal and regulatory violations
  • Recommend enhancements to existing programs based on new regulatory developments, industry best practices and emerging risks.

Registered investment companies and advisers are required to review the adequacy of their compliance policies and procedures, and the effectiveness of their implementation, at least annually. Our team conducts independent Rule 206(4)-7 and Rule 380-1 annual compliance reviews with minimal business disruption. At the same time, we gather and compile relevant supporting documentation and prepare a written report to provide transparency and assurance of the independent review to your key stakeholders.

The practical application of compliance rules and regulations varies between and among an organization’s business units, employees and affiliates. That’s why we created THE PRACTICAL CCO—our proprietary training program that helps organizations deliver, document and maximize the impact of their training initiatives. Your compliance training program will be comprehensive, efficient and practical, as well as tailored to the responsibilities and business activities of:

  • Newly hired employees
  • New analysts/ associates (private funds/banks)
  • C-suite executives and senior management
  • Managers and supervisors
  • Employees (firm-wide annual training)
  • Board committees and directors
  • Consultants and other non-employees.

In addition to complying with existing regulations, many organizations are under increasing pressure from regulators and other stakeholders to predict and plan for what’s next. Our team’s industry expertise helps organizations like yours prepare for the future—we will:

  • Identify new and proposed regulations that can potentially impact your organization
  • Develop an internal system to monitor regulatory deadlines and determine when action is required
  • Monitor and document what actions your organization takes to meet regulator and investor reporting requirements.

An effective compliance program must meet the needs of both internal and external stakeholders. Our team’s extensive experience in designing compliance programs has helped our clients assess, and where necessary strengthen, their Culture of Compliance. We work with management to establish a “Tone at the Top” consistent with the expectations of regulators and other key stakeholders. Most important, we help develop and implement a robust Control Environment that is transparent and in keeping with regulatory and stakeholder disclosures—we provide:

  • Comprehensive risk assessments
  • Tailored policies and procedures
  • Dynamic monitoring and testing programs
  • Robust annual review processes
  • Customized compliance training.

Establishing and implementing an effective compliance program is crucial to the ongoing success of your regulated business. Monitoring and updating it is challenging in the face of new and competing business interests and/or constrained resources. You can rely on our skilled professionals to help you demonstrate to key stakeholders that your compliance program is aligned with your strategic objectives and that it contains all the required elements —we will:

  • Quickly and accurately identify gaps and weaknesses in an existing program
  • Recommend enhancements to plug holes and limit exposure
  • Help develop methodologies to identify and audit new and emerging compliance and legal risks.

Preparing for regulatory examinations is essential. Our professionals have managed hundreds of SEC, FINRA and state regulatory examinations for all types of asset managers. We will help your organization prepare by developing the “Foundation Documents” that are critical to the success of any regulatory examination. Furthermore, before the regulators arrive, we will review your compliance policies, operating procedures, organizational documents, offering documents and marketing materials to identify inconsistencies, red flags and potential deficiencies. We will also conduct staff interviews to help management and key employees prepare for the rigors of an actual exam. We then provide practical feedback to management and in-house compliance professionals so that they may proceed with confidence on the first day of any exam.

Onsite SEC exams can be a drain on resources. Volumes of documentation must be produced in advance. Once the regulator is onsite, your Chief Compliance Officer and other staff are under intense pressure as they comply with information requests while continuing to handle their day-to-day responsibilities. Having managed and led hundreds of actual regulatory exams, our professionals understand what it takes to manage the exam process—we provide practical onsite support to help you:

  • Identify the nature and scope of a regulatory examination (routine, cause, sweep, etc.)
  • Narrow the scope of an examination
  • Review and respond to specific information requests
  • Remediate preliminary findings and deficiencies
  • Conduct exit interviews with examination staff
  • Negotiate final findings and deficiencies
  • Prepare written responses to findings of deficiencies and violations
  • Develop, implement and track corrective action plans
  • Identify and comply with key stakeholder disclosure requirements.

Hiring a professional Chief Compliance Officer (CCO) may not make sense for your organization. And even if you decide to hire, it could take a long time to find someone who is the right fit. Whether you need a long-term CCO solution or short-term CCO support services, our experienced and highly skilled professionals may be your answer—we can:

Design, implement and monitor an effective compliance control environment that includes: tailored written policies and procedures, dynamic monitoring and testing programs, robust Rule 206(4)-7 annual reviews and customized compliance training that targets different roles and functions across your organization.

Prepare detailed quarterly compliance reports for senior management and C-suite executives, as well as board directors and trustees, that summarize compliance monitoring activities, compliance violations, new regulatory developments, applicable policy and procedure changes and other relevant compliance matters.

Other services include, but are not limited to:

  • Ongoing review of marketing materials
  • Quarterly code of ethics report reviews and testing
  • Preparation of form ADV filings and updates
  • Managing compliance reporting requirements for sub-advisers and fund administrators
  • Onsite diligence reviews of key vendors and third-party service providers, including custodians and fund administrators
  • SEC exam support.

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