Risk ManagementRegulatory Risk Management and Compliance Services

Turn regulatory compliance into a competitive advantage. Our professional team is qualified to evaluate regulatory risk at your firm; looking at risks, compliance, capital, and liquidity issues. We’ll work with your stakeholders to develop adaptable and scaleable strategies that meet your firms objectives; while keeping compliance and risk factors front and center.

RND Resources Inc provides the expertise needed to;

  • establish programs that satisfy regulatory requirements and flow with emerging risks,
  • implement policies and procedures to mitigate risk and address compliance challenges.

Areas of Expertise in Regulatory Risk Management

    Development of Compliance Programs

We develop compliance programs for all types of securities brokerage firms and investment advisers including broker-dealers, municipal brokers, private equity fund managers, hedge funds, commodity traders, futures commission merchants, and more.

    Comprehensive Review of Compliance Systems

Our compliance review services are designed to identify compliance weaknesses in a gap analysis of; supervisory procedures, sales practices and disclosures, portfolio management, trading policies and procedures, cyber-security policies and consumer protection, record-keeping systems, and more.

    Mock Examination and Preparation for Regulatory Inspection

We have extensive knowledge of SEC, FINRA, MSRB, CFTC, NFA and other self- regulatory agency inspections. Prepare for exams in advance as a measure to define compliance gaps and mitigate risk before it progresses to disciplinary action, fine, or sanction.

    Trading Systems and Information Technology

Emerging trends in technology and cyber-threats make it increasing difficult to manage Information systems and adapt to trades technology. Avoid weaknesses in systems with an assessment of your operations. We’re able to make recommendations that improve controls and reflect current trends in technology. Our analysis looks at trading systems, investment models, technology, and management controls.

Specialty Risk Management Programs for Brokerage Firms

1. Trading and Market Maker Surveillance (TMMS) Review

RND Resources examination of TMMS helps market makers guard against potential violations related to all aspects of their equity trading operations. With this preventive compliance examination modeled after the Regulatory TMMS exam, our clients can take a proactive role in determining their level of compliance with TMMS rules and regulations, which is invaluable in avoiding the sizeable fines and substantial negative publicity that follows an enforcement action.

RND’s trained experts conduct a through review of equity trading desk operations including:
• Trade Reporting Practices
• ACT Compliance – Automated Confirmation of Transactions
• Customer confirmation | SEC Rule 10b-10 Compliance
• Best Execution & Regular and Rigorous
• Limit Order Review
• Locked & Crossed Markets
• SEC Section 21 (a) Report Compliance
• SOES Usage – Small Order Execution System
• OATS Compliance – Order Audit Trail System
• Short Sales

RND has extensive experience with the FINRA’s OATS (Order Tail Audit System) rules, positioning us to evaluate all aspects of your firm’s operations related to OATS, and determine the extent of its compliance with current requirements. This includes the adequacy of written supervisory procedures and preparedness for OATS Phase III reporting requirements.

Limited TMMS Exam

RND also offers a limited TMMS Exam to market makers seeking an independent review of one or more areas included in the Full TMMS Exam.

2. OSJ & Branch Office Inspections

OSJ (Office of Supervisory Jurisdiction) and Branch Office Inspections are total outsourcing solutions for meeting annual inspection requirements and insuring ongoing compliance at the branch level. 

Comprehensive OSJ and Branch Inspection Services

• Branch office supervisory and operational procedures
• Compliance with SEC, FINRA and state regulatory requirements
• Implementation of firm policies and procedures
• Proper customer account documentation and approval
• Supervision for OSJs of branch offices and detached representatives
• Customer account activity including suitability, breakpoints, switching, churning, etc.
• Handling of customer funds and securities
• Advertising and sales literature review
• FINRA Correspondence and SRO notifications
• Outside activity disclosure and undisclosed outside activities
• Investment advice and investment adviser representative activities
• Activities on Premises of Financial Institution
• Internet usage and e-mail

Annual OSJ Inspection Cycle Services

  • Review the firm’s annual inspections cycle, establishing and implementing an annual schedule consistent with compliance obligations
  • Periodic Review for Non-Supervisory Officers & Detached Registered Representative Locations
  • Plan and conduct Annual Branch Office Compliance Meetings (and for Non-Branch locations)
  • Compliance & Supervisory System Assessment: Assess supervisory and compliance procedures of branch and non-branch locations; insuring that they meet regulators’ expectations.

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Contact our business development representative for a consultation and quote on risk governance program development & gap analysis – (818) 657-0288