Service Overview

What is the
client issue?

Clients that are registered with various global regulatory agencies will be subject to examination by the relevant regulatory authority to which they are registered. Typically, when a client is informed by a regulator that they are being examined, they will have between 8-10 days to prepare a response.  An examination request letter can be upwards of 50 request items in the initial request and may include several follow-up requests over a period of months.

In addition, certain members of Senior Management, including but not limited to, the Chief Compliance Officer, Portfolio Manager(s), Chief Investment Officers, Chief Financial Officer and Chief Administrative Officer may be subject to interviews conducted by the examination team during the regular course of the examination.

How does
Optima help?

Optima assists its clients through NFA and SEC examinations by providing hands-on support and acting as an extension to the firm’s compliance department, using its extensive experience of responding to and managing regulatory exam processes.

Optima will be right by your side throughout the entire process, from day one of the examination up until the very end. Our experienced team will work hard to do the majority of the heavy lifting in preparation and response, easing any burden on you throughout the process.

Optima provides front to end project management of regulatory examinations by:

  • Organizing and preparing documents in line with the specifications of the regulatory requests
  • Drafting regulatory response(s) in line with regulatory expectations
  • Coordinating follow-up responses to the regulators
  • Preparing senior management for regulatory interviews
OVERVIEW
Optima Case Study

Regulatory Exam

A Registered Investment Adviser (“RIA”) has been registered for 2 years with the Securities and Exchange Commission (“SEC”). The firm has 6 employees and is managing $400 million. The Chief Compliance Officer is also the Chief Financial Officer and Chief Operating Officer and is very busy with her day to day running of the firm. The CCO/ CFO/ COO is notified of a regulatory examination that will commence during the week of Thanksgiving.

The first request contains a list of 50 items required to be submitted to the regulatory agency. The turnaround time for the initial examination is 7-10 business days. The regulatory examination will require the CCO to devote a significant amount of her time to prepare and respond to the regulatory agency. Most compliance teams run very thin and the CCO does not have backup in any of her roles.  Exams can be especially daunting to a small start-up RIA and can take upwards of 3-4 months.

With Optima involved in the process, the firm is supported in preparing the documents and organizing the interviews, and is assisted in ongoing project management to ensure the very busy employees of the firm can continue to focus on their work and not worry about the examination.

CASE
STUDY
Contact Us

info@optima-partners.com

CONTACT

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