Independent Compliance Consultants and Monitors

When a public company or regulated entity needs an independent compliance consultant or monitor as required by an enforcement action or a regulatory or court order, Promontory can effectively and efficiently fulfill that need.  We are routinely selected by companies and approved by their regulators to serve as independent compliance consultants.  Our extensive regulatory and law enforcement experience gives confidence to clients and their regulators that we will fairly and effectively execute this important function.

Representative Assignments

• Promontory served as the independent compliance consultant for one of the world’s largest financial institutions as part of its settlement of SEC enforcement actions alleging late trading and market timing through mutual fund complexes.  We conducted a comprehensive review of the fund complexes’ supervisory, compliance, and other policies and procedures designed to prevent and detect: (1) conflicts of interest, (2) breaches of fiduciary duty, (3) breaches of codes of ethics, and (4) violations of the federal securities laws.  As required by the SEC settlement, Promontory submitted reports to the client and SEC that outlined our findings and detailed our recommendations to strengthen the company’s supervisory, compliance, and other policies and procedures.

• In connection with an SEC investigation and a related bank inspection of a large multi-state diversified financial holding company, Promontory conducted a comprehensive review of the company’s enterprise-wide control and risk-management environment.  The SEC’s investigation centered on whether the company prepared its financial statements using accounting principles that were not in conformity with GAAP.  As a condition of settling the various regulatory inquiries, Promontory’s team reviewed and analyzed the company’s (1) governance and management structure, (2) internal audit and control functions, (3) regulatory reporting, and (4) risk-management structure, including compliance and financial reporting and accounting systems.  Promontory prepared four reports — submitted to the client and the government — outlining our findings and detailing our recommendations to strengthen the company’s control environment.

• A large financial services company engaged Promontory to conduct a review of the firm's policies, procedures, and practices related to the use and protection of personal and/or financial information of customers. Promontory assessed the effectiveness of the design and implementation of these policies, procedures, and related practices to determine whether, among other things, they were consistent with state and federal law, including the Gramm-Leach-Bliley Act and the Commission's Regulation S-P. Promontory prepared a report for the client as well as the client's regulator outlining Promontory's findings and detailing recommendations to strengthen the company's policies and procedures.

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For more information regarding the Promontory Securities Practice Group, please contact Kathleen Hamm, Managing Director, at (202) 384-1022 or khamm@promontory.com