Deontea Ltd is fully aware that choosing an external regulatory resource is a highly strategic decision. It is important to consider what sort of support your firm need and establish the type and level of service you require. You need to make sure that any service you choose will address your objectives and effectively help ensuring that you comply with your regulatory obligations.
To support this decision making process, we would like to share with you some of the projects we have worked on and how it has impacted our clients.
AML/CTF
A Luxembourg renown Depository Bank wanted to quality assess its AML/CFT framework (e.g. Policy/Procedure Suite, BWRA) and ensure it has adequately identified all applicable requirements.
We have provided the Bank with a totally reshaped Policy Suite fully tailored to their business model that did not copy/paste the regulation in place. The Suite incorporated specific provisions for branches and subsidiaries together with Group wide guidelines. Deontea Ltd has also designed a comprehensive and flexible AML/CFT risk assessment model that will allow to carry out a business wide risk assessment complying with Art. 2-2 of the Law of November 2004. To underpin the deliverables, a comprehensive
Regulatory Footprint of the CSSF Reg. 12-02 and latest FATF Guidelines have been performed including a full impact assessment on existing processes. The client has expressed it satisfaction and outlined that the provided material are suitably scalable and allow for future developments including full ownership by the Compliance Team.
A UK payment service firm needed to audit its financial crime policies & procedures suite before contacting a bank with whom they wanted to work. They hired us to review their existing arrangements.
We have reviewed in details the entire suite including the fraud & anti-bribery policies, adding comments and suggestions for amendments or re-drafting. We also prepared a detailed list of missing policies & procedures, and some governance related guidance.
Satisfied with the outcome, they requested that we update their policies and create the missing documentation, including the
AML/CFT business wide risk assessment. At delivery we took the time to explain how the framework worked, and ensured that all the documentation was approved by the firm governing body (requested proof of approval). The client went through the bank on-boarding process smoothly and can concentrate on developing its business further.
A UK investment firm wanted to expand in Switzerland, and contacted us to assist them in establishing their AML/CFT framework, as they needed to complete their documentation to apply for authorisation with FINMA.
Having studied carefully their situation, we let them know that the counsel they have received was misplaced. We advised them that for the type of activities they wanted to carry on, it would be more appropriate for them to become a member of a self-regulatory organisation as an alternative to direct supervision by
FINMA: the process is quicker and the regulatory obligations are lighter. The client was pleasantly surprised and requested that we assist them with the entire authorisation process, including setting up the compliance function. We helped the client establish its compliance framework, including the all internal policies (Financial crime, AML/CFT, ABC … etc.), monitoring plan and governance arrangements, ensuring that it was consistent with the existing UK arrangements to facilitate future business developments, and mitigate the risks stemming from multi-jurisdictional and cross-border operations.
A global asset manager hired us to assist their IT department to design and implement an automated client on-boarding system for its Swiss office.
We have designed a fully automated process whereby the client relationship manager will be able to complete the KYC questionnaire, upload the requested document by client types, and monitor whether all the necessary documentation has been collected before being sent to the compliance team for validation. It included the possibility of setting alerts for missing information, create ad-hoc requests for atypical clients and produce monthly reports to be included in the AML/CFT MIs. After few months in operation, the client contacted us anew for additional support, as they wanted to adopt the same system in the UK and Luxembourg office to tailor it to local AML/CFT requirements, where they differed from the Swiss ones.
Investment firms
A US/UK based corporate finance boutique specialised in distribution of newly issued securities sought to obtain a full MiFID II authorisation in France to secure its post-Brexit operations.
Deontea Ltd has audited all existing arrangements & policies/procedures in place to assess what was needed anew and what could be re-used after having been updated. It held several meetings at the
ACPR to agree upon the type of authorisation needed. It prepared the entire Dossier including the regulatory business plan, the high level manual, the conduct manual and the initial monitoring plan. The Dossier was submitted to the ACPR. Deontea Ltd assisted the Firm through the entire process including meetings held at the Regulator and secured the full authorisation successfully.
An EU investment firm contacted Deontea Ltd to assist them in establishing their wealth management operations in Switzerland.
During the entire process, Deontea Ltd has efficiently advised the Firm on the arrangements needed, provided regulatory analysis of the applicable laws including on cross-border dealings and prepared drafts of required policies & procedures (e.g. code of conduct, conflicts of interest, client on-boarding, account opening, review of the marketing materials & client agreements, proof reading of the website .. etc.). It has also reviewed all trading arrangements & order processing to ensure compliance with applicable regulations and designed the UK/Swiss governance oversight. Satisfied with the outcome, they requested that we assist them when the OAR came to audit their arrangements. The OAR concluded that the Firm was fully compliant and that no remediation work should take place.
An UK investment Firm providing execution only services (CFDs) requested us to undertake a remediation mission on its appropriateness arrangements following an FCA evaluation.
Deontea Ltd has designed a comprehensive Appropriateness Policy including a tailored made appropriateness questionnaire & client assessment fully representative of the Firm activities. Few months later, the Firm has contacted us again, to provide them with a similar framework covering suitability as it wanted to vary its permissions.
An investment firm requested Deontea Ltd to provide a comprehensive monitoring plan including mandatory reviews, testing & record keeping requirements.
After having analysed in details the Firm business model to identify the applicable regulatory framework the Firm was subject to, Deontea Ltd has created a fully comprehensive monitoring plan including for each section the objectives of the monitoring, the frequency, described what is tested and how and the supporting documents to record. The Compliance department was delighted to finally have a comprehensive & easy to use tool to monitor the firm compliance with its regulatory obligations.
Banks
A UK Bank has contacted Deontea Ltd to provide a bespoke regulatory advice on the Continuity of Access rules and how it applied to its specific business model & client type.
Deontea Ltd has provided the Firm with a documented advice on the rules underpinned by the relevant legal references. It highlighted clearly what part of the rules apply to the Firm including confirming that a whole part of the framework did not apply given the Firm client base.
A UK Bank has contacted Deontea Ltd to design a full regulatory footprint listing all the FCA rules that apply to its business model and to identify the main regulatory risks to address.
Deontea Ltd has designed a detailed applicability matrix collating all FCA rules by sourcebooks and chapters explaining why and how it applied to the Firm. For each business line, the matrix identified the level of risk (high, medium & low) to allow the firm to assess the efficiency of its arrangements and address deficiencies if any.
A small French Bank has contacted Deontea Ltd to review its governance arrangements to ensure that it complied with the EBA/ESMA on suitability assessment for management body members and key function holders.
Deontea Ltd has carefully reviewed the existing arrangements, has conducted various interviews with the Managing Body, HR and Compliance function and gap analysed the existing Terms of Reference. We have provided the Firm with a comprehensive analysis and tangible proposals to improve the existing governance arrangements and ensure that the Firm fully complies with the applicable regulatory framework.
A global depositary bank in Luxembourg wanted to assess what changes it had to implement to comply with SRD II implementing Regulation.
Deontea was contacted by a major accountants, auditors and consultants firm to assist in providing expert regulatory advice and assist in delivering the project. We have helped the Team to fully understand the complexity and challenges of the new regulatory framework, clarified grey areas and proposed innovative solutions that allowed providing the firm with a detailed impact assessment, a full gap analysis and propositions for deploying the new processes.
Asset Management
A global asset manager wanted to assess its order transmission process and ensure that it complied with the Order Handling rules as well as Record keeping requirements.
We have audited the entire order transmission process from the fund managers issuing a decision to deal, transmitting the decision to the execution table, receiving the execution details and recording the details of the transaction. It appeared quite quickly that the Firm has not adopted an adequate procedure to manage “Late trades & New Issues” and “Dealing Errors”. On the client request Deontea Ltd has designed and drafted the relevant policies and assisted with the implementation of the relevant workflows.
A medium AIFM registered in Luxembourg needed to review its policies & procedures as MiFID II came into force and it was authorised to provide services under Article 6.4 (RTO & Discretionary Portfolio Management).
Deontea Ltd has audited its existing arrangements, performed a comprehensive gap analysis and highlighted the changes to be introduced. Satisfied with the outcome, they requested that we update their policies, create the missing documentation including updating the Conflicts of Interest and Best Execution policies and design the relevant detailed monitoring plan.
An exempt AIFM has contacted Deontea Ltd as it assets under management have exceeded the thresholds and it needed to apply for a full AIFM authorisation with the CSSF in Luxembourg.
Deontea Ltd has audited all existing arrangements including policies and procedures in place to assess what was needed anew and what could be re-used after having been updated. It prepared the entire Dossier including the regulatory business plan, the high level manual, the conduct manual and the initial monitoring plan. The Dossier was submitted to the
CSSF. Deontea Ltd assisted the Firm through the entire process including meetings held at the Regulator and secured the full authorisation successfully.
Fintech
A newly authorised P2P platform in relation to lending sought to create a comprehensive regulatory footprint, i.e. review all the FCA sourcebooks (rules & guidance) to identify in details what applied to its business model.
Deontea Ltd has created a detailed applicability matrix highlighting which rules and guidance applied/did not apply to the Firm including the reason why and listing the relevant arrangements to implement. We also created a full policy suite including a specific conduct manual encompassing
CONC related requirements. The Firm commented: “
Having had to review an enormous number of documents from lawyers and other sources, your documents are the only ones where I have not had to become involved in requesting changes and re-work”.
Others
One of Deontea Ltd’s founder has worked for few years within the Policy Department of the
FCA, where she was instrumental in the drafting of (i) numerous section of the Commission Delegated Regulation supplementing
MiFID II, (ii) RTS 27 & 28 on Best Execution reporting requirements, (iii) various L3 provisions such as
ESMA Q&A on investors protection, and participated in several other stream of work including
PRIIPS, the Fair and Effective Market Review, or the revision of applicable rules to non-MiFID designated investment business.
Other projects included taking part in several Thematic projects such as the Use of in-house products in wealth management, Best Execution and Payments for Order Flows, Flows of inside and confidential information, Dark Pools, private/public side organisation, marketing material/research & communication, and reporting to clients and Asset Managers dual regulatory requirements and how to articulate obligations stemming from various Directives (UCITs, AIFM & MiFID).
