Capital markets and investment management
Capital markets and investment management
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Capital markets and investment management

KPMG can advise you on the strength of your compliance, risk and supervisory systems in today’s complex regulatory environment.

As regulatory rules evolve, the capital markets becomes more complicated and businesses must be agile enough to respond. Banks, broker dealers, asset managers, hedge funds, investment advisors, future commodity merchants and swap dealers are under pressure to interpret rules and devise responsible and sustainable processes in securities and derivative markets. They’re expected to understand the latest technologies, such as blockchain and stay abreast of new products such as cryptocurrencies, while also ensuring that the correct policies and controls are in place for effective compliance. 

Across all asset and investor classes, KPMG can advise you on the adequacy and reasonableness of your compliance, risk and supervisory systems, including policies, procedures, processes, and controls to determine compliance with regulatory rules, regulations and industry best practices. We specialize in helping first and second lines assess, remediate and test risks, processes and controls, and we regularly perform assessments and assist with remediations and transformations. 

KPMG’s team of leading experts—many with years of industry experience in Compliance, Supervisory and Operational risks, processes and controls—have proven methodologies and tools that enable them to provide in depth and efficient reviews to transform your business processes.

Additionally, our KTRADE Trade Reporting Testing Tool can assist your firm with independent testing, helping to improve the accuracy and completeness of transaction reporting and surveillance. Specific features of the tool include:

  • Automated Testing of 100% of Regulatory Submissions Data Set
  • Tests Reporting Submissions for Completeness, Accuracy and Timeliness
  • Automated, Sustainable and Repeatable Way to Perform Back Testing, Compliance Testing and Control Environment Testing (e.g. LOPR)
  •  Multiple Modules in Production or Development, including OAT, EBS, LOPR, CFTC/EMIR/CAD OTC Derivatives and CAT
  • Pre and Post- Submission Modules
  • KTRADE Testing Can Be Coupled With Control Environment Assessments, Reporting Remediation, Root Cause Analysis and Automated Solutions (e.g. BOTs)
  • Related BOTs Also Available

Current topics that KPMG is helping clients tackle include:

Institutions– Securities and Derivatives

  • Trade Reporting, Electronic Trading Controls & Surveillance
  • Operational Process and Control Reviews
  • Compliance Transformation, 3 Lines of Defense & Supervisory Program
  • Compliance Risk and Management Reporting
  • Non-Financial Regulatory Reporting and Governance
  • Regulatory Reform Implementation, Readiness and Independent Testing
  • Regulatory Rule Mapping and Linking to Control Infrastructure throughout Organizations to Facilitate Change and Regulatory Change Management
  • Informational Barrier Programs, Conflicts Clearance Processes and Controls
  • Expansion Plans in the Areas of Investment Banking and Capital Markets in Regional Banks

Cryptocurrencies

  • Regulation
  • Registrations  (Money Transmitter, FINRA, Banking Regulators)
  • Effective Compliance and Supervision Programs and Controls

Wealth Management

  • Regulation “Best Interest”
  • New “Standard of Conduct” for Investment Advisors Focused on Retail Clients
  • Oversight Over Financial Advisors with Investment Discretion
  • Compliance Transformation, 3 Lines of Defense & Supervisory Program
  • Compliance Risk and Management Reporting
  • Regulatory Reform Implementation, Readiness and Independent Testing
  • Regulatory Rule Mapping and Linking to Control Infrastructure Throughout Organizations to Facilitate Change and Regulatory Change Management

Investment/Asset Management

 

Registered Investment Companies

  • Liquidity Risk Management
  • SEC Report Modernization
  • Section 15(c ) Fund Profitability Analysis

Alternative Investment Management

  • Fee and Expense Arrangements
  • Valuation Oversight and Governance
  • Allocations of Investment Opportunities (Fair and Equitable)

Enterprise Compliance Programs

  • Measuring Operating Effectiveness of Compliance Program
  • Integration of the First Line Risk and Control Assessments into the Second Line Compliance Risk Assessment and Testing Process
  • Conflicts of Interest (MNPI, Information Walls, etc.)