Service Overview

What is the
client issue?

Firms are ever fast expanding and diversifying into new asset classes, launching new trading strategies and new funds, as well as increasing their AUM and investor base. With such expansion activities, new rules and regulations are brought into scope, either through operating in new jurisdictions or through entering into new asset classes. In addition, greater complexity of business also means greater complexity of regulations to adhere to.

With senior management teams focused on the business and operational side of expansions, the compliance infrastructure can sometimes get left behind and it can be challenging for firms to navigate the complexity of the rules and determine what the compliance framework should look like.

How does
Optima help?

Through our experience of working across a wide range of clients and being a truly asset management focused regulatory consulting firm, Optima is able to advise clients on what a commercial, risk-based and effective compliance framework looks like to mitigate the regulatory risks the firm faces.

We adopt a truly risk-based and commercial approach to advising our clients on the type of compliance policies and procedures required to protect the business.  Optima does not operate a tick-box approach to conducting regulatory reviews & health checks and we tailor our advice, findings and recommendations based on the client’s risk appetite and business objectives.

OVERVIEW
Optima Case Study

Market abuse thematic review

One of Optima’s large hedge fund clients rapidly expanded its trading volumes and also started trading new asset classes, combined with hiring dedicated portfolio management teams as part of expanding into the new asset classes.

Optima was engaged to conduct a review of the client’s compliance framework, specifically focused on the potential new market abuse risks the clients may be facing as a result of its expansion activities.

Optima structured the project to provide tailored, commercial advice based on the following approach:

  1. Review of the client’s business model, specifically focusing on its trading activities and expansion into new asset classes and increased trading volumes
  2. Mapping of the client’s trading strategies, execution venues and methods, to identify the market abuse risks applicable to the firm
  3. Completion of a market abuse risk assessment, mapping out applicable market abuse regulations from each jurisdiction against the firm’s trading activities
  4. Review of existing market abuse controls to assign risk rating and identify areas where additional controls are required
  5. Design of practical recommendations and solutions to reduce the client’s increased exposure to market abuse risks

Optima was subsequently engaged to assist the client in implementing enhanced market abuse controls, including integration of the third-party post trade surveillance system and periodic compliance monitoring testing programme.

CASE
STUDY
Contact Us

info@optima-partners.com

CONTACT

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