Jordan & Jordan’s Regulatory Compliance practice has helped clients ensure that their procedures and controls are developed and administered in accordance with federal and self-regulatory requirements. Our Regulatory Compliance team includes experienced professionals who have worked in senior roles at broker dealers, investment advisers and regulators. We can ensure that your compliance program is consistent with regulatory requirements and industry practices. Through our close affiliation with the Financial Information Forum (“FIF”), our Regulatory Compliance team is immediately aware of upcoming and pending regulatory changes impacting the financial services industry including consolidated audit trail (“CAT”), institutional order routing (SEC Rule 606) and new FINRA/MSRB mark-up/mark-down rules.
Whether you are looking to remediate a known deficiency in your program or if you are interested in a proactive review to identify and address issues before they result in regulatory actions, our team can help you develop a solution with the procedures, processes and controls to ensure continued success. J&J offers a cloud-based, cost-effective automated surveillance system to monitor risks on a daily basis as well as traditional consulting engagements covering such areas as annual controls testing (FINRA Rule 3120), electronic bluesheet reporting (“EBS”) and assistance with regulatory inquiries. Please see below for a comprehensive list of services J&J can provide and contact us today to discuss how we can assist with your compliance needs.
J&J’s Execution Compliance and Surveillance (“ECS”) service is web-based monitoring tool designed to identify exceptions across various compliance disciplines including best execution (equity and fixed income), market abuse (spoofing/layering, marking the close, etc.), Regulation NMS (trade throughs, ISOs), short sales (SEC Rule 201) and regulatory reporting (SEC Rules 605 and 606). ECS also includes integrated case management functionality allowing users the ability to action their exceptions and provide a full audit trail of how each exception is addressed along with detailed metrics.
J&J can perform a thorough review of your current written compliance and supervisory procedures with relation to your firm’s business lines and identify any potential gaps or areas of enhancement. Additionally, we can conduct the testing of your controls as required by FINRA Rule 3120. We can also develop a testing plan to ensure a comprehensive scope for testing purposes.
At J&J, our compliance professionals have experience dealing directly with regulators in preparing written responses to inquiries as well as assembling document productions in conjunction with requests received as part of routine examinations. Our staff can assist with unexpected increases in data requests for such standard items as bluesheets or with more complex matters involving trade reporting (OATS/FNTRF/MSRB), best execution, mark-up/mark-downs or insider trading. We can provide staffing on a temporary, short-term basis or make staff available as needed to address particular inquiries. Additionally, our service can include a monthly/quarterly report with detailed metrics concerning your firm’s inquiries. Typical metrics include open inquiries, inquiries on extension/late, inquiries grouped by rule/subject, inquiries grouped by business line/trader, etc.
The SEC requires that any broker-dealer with market access perform an annual review of their financial and regulatory controls in order for the CEO to provide a certification that the controls comply with the requirements. J&J can perform an independent assessment of your firm’s control structure and automated controls to ensure that they meet the standards under SEC Rule 15c3-5.
During 2015 and 2016, there were multiple regulatory fines impacting several firms for tens of millions of dollars due to deficiencies with EBS reporting. J&J can perform a review of your EBS processes and technology to identify any data issues including missing trades, inaccurate codes or improper formatting. We will also evaluate the processes for generating, reviewing and transmitting EBS reports and make recommendations for any necessary enhancements.
The SEC’s regulations ATS and SCI require that all exchanges, SRO, ATSs and clearing agencies have appropriate policies and procedures to ensure the proper functioning and ongoing viability of their systems. Each regulation calls for an annual review to be conducted to ensure continued compliance with their requirements. J&J has performed ATS and SCI reviews and can provide guidance on how your firm compares to industry best practices.