Asset Management
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Asset Management

Representative Engagements

The global financial services business is experiencing unprecedented legislative and regulatory change, resulting in heightened scrutiny of asset managers from multiple regulators in multiple jurisdictions. Regulatory scrutiny will increase with full implementation of the recent global and domestic regulatory initiatives.


As new regulatory requirements emerge, asset managers will be required to reassess and enhance their governance, compliance, and risk management.  Having the right support team can mean the difference between growth and stagnation.

Promontory’s Asset Management Group has depth and knowledge gained as leaders of major regulatory bodies and asset management firms in the U.S., Europe and Asia. We assist our clients in enhancing governance, risk management, compliance, and strategic planning while simultaneously addressing the individual regulatory concerns or challenges they face. In North America, Promontory’s Asset Management Group focuses on the regulatory and compliance challenges facing companies regulated by the SEC, FINRA, the FRB, the OCC, the CFTC, the OSFI and state regulatory agencies.  Our experienced team handles regulatory issues in Canada, the UK, EU and across the Asia Pacific region.

In this time of unparalleled regulatory change, Promontory’s Asset Management Group serves as a trusted advisor, understanding clients’ businesses and the expectations of their existing and newly  designated regulators. We use this knowledge to help our clients achieve their business goals while meeting increasing regulatory expectations and protecting them from burdensome regulatory risks.

Our services fall into three categories:

  • Strategic Advice (including regulatory due diligence and assessments in M&A transactions)
  • Governance, Risk Management, and Compliance
  • Regulatory Guidance and Preparing for Regulatory Examinations

Types of clients served:

  • Investment Advisers and Investment Companies
  • Broker-Dealers
  • Asset Management Businesses within Integrated Financial Institutions
  • Hedge Funds and Private Equity Firms
  • Pension Funds and Endowments
  • Service Providers to the Asset Management Industry

Key contacts by geography:

Canada:

  • Sheryl Kennedy +1 416 863 8555 

United Kingdom and Europe: 

  • Stuart King +44 207 997 3402

United States:

  • Pierre de Saint Phalle +1 212 365 6974
  • Kathy Dick +1 202 384 1092  
  • Doug Harris +1 212 365 6568 

 

Representative Engagements

  • A leading asset manager engaged Promontory to advise on a range of regulatory reforms, including the Dodd-Frank Act, affecting its asset management business. Our advice covered the impact of new legislation on the company’s business strategy, additional regulatory reforms applicable to money market mutual funds, the Financial Stability Oversight Council’s systemic designation process, compensation issues, Basel III, choice of bank charter.
  • A large regional bank subject to an enforcement action from its regulators engaged Promontory to review its investment adviser's and broker-dealer’s compliance programs.  Promontory identified weaknesses in these programs and designed a series of actions to correct these weaknesses in advance of regulatory examination.  The bank subsequently engaged Promontory to assist in the implementation of the recommendations.
  • Promontory served as the independent compliance consultant for one of the world’s largest financial institutions in its settlement of SEC enforcement actions alleging late trading and market timing by its mutual fund complexes. We conducted a comprehensive review of the funds’ supervisory, compliance, and other policies and procedures to prevent (1) conflicts of interest, (2) breaches of fiduciary duty, (3) breaches of codes of ethics, and (4) violations of federal securities laws. As required by the SEC settlement, Promontory submitted its report to the client and the SEC with our recommendations to strengthen the company’s supervisory, compliance, and other policies and procedures. Promontory then reviewed the effectiveness of the implementation of its recommendations.
  • In connection with a deferred prosecution agreement, Promontory recommended enhancements to the compliance function of a large global financial institution providing insurance, broker-dealer and asset management products to institutional and consumer clients. We later reviewed the implementation of our recommendations and provided a report to the company’s Audit Committee on the effectiveness of the company’s compliance in comparison to the compliance procedures of peer financial institutions, using the U.S. sentencing guidelines as the benchmark.
  • Promontory has been engaged by two major asset management businesses to (1) conduct a gap analysis comparing and mapping proposed and final rules issued under Title VII (Derivatives) of the Dodd-Frank Act against existing policies and procedures, monitoring, testing, training and other controls; and (2) identify deficiencies or required remediation.  As part of this process, we assessed the adequacy of each firm’s human and technological resources and their sufficiency in meeting the requirements of Title VII.  Promontory delivered a report outlining findings and recommendations related to the organization, structure, staffing and responsibilities of the firms’ compliance functions and derivatives business models, and assisted the firms in implementing these recommendations.  
  • Two hedge funds engaged Promontory to review their governance, risk management and compliance programs in light of regulatory issues raised by the SEC. The reviews included an assessment of governance and risk management structures, compliance and codes of conduct, conflict management, and policies and procedures relating to various hot-button issues, including best execution, personal trading, and gifts and entertainment. 
  • In the UK, Promontory has supported numerous asset management and hedge fund organizations in preparing for Financial Services Authority ARROW reviews.  We have undertaken a benchmarking review of key market-facing policies for a major global asset manager, and we have delivered a wide range of internal training courses, at every level, focusing on regulatory and criminal legislation relating to insider dealing and market abuse.