RegComp Financial, a specialised compliance consulting firm dedicated to supporting lower and middle-market investment advisers, private funds, and broker dealers, has expanded into Florida.
The sharp and pronounced impact of the pandemic on the securities market gave rise to a host of regulatory risks for market participants, creating marked challenges for in-house compliance officers and general counsel staff. From remote work arrangements to cybersecurity concerns and several material new rule adoptions governing investment advisers, there is a significant increase in the need for compliance expertise and guidance to augment a firm’s ability to lower the risk of being in the regulatory spotlight and resolve compliance challenges more efficiently.
In the first quarter of the year, the Division of Enforcement at the US Securities and Exchange Commission (SEC) began accelerating the pace of investigating indicators of potential securities law violations. RegComp’s review of the SEC’s orders covering Q1 2021 revealed enforcement activity totalling nearly USD2.5 million in penalties ranging censures, disgorgement, prejudgment interest, and civil penalties, as well as orders requiring executives to provide notice of the SEC’s order to advisory clients. Similarly, state regulators continued to institute enforcement actions. This is especially true in the Southeast.
Identifying an opportunity to assist prospective clients maintain market integrity, reduce and perhaps, entirely avoid penalties, RegComp also launched a new service offering that covers the Financial Industry Regulatory Authority (FINRA) Rulebook for Capital Acquisition Brokers (CAB). Understanding key issues that can give rise to regulatory scrutiny in the CAB space allows the firm to continue its focus of offering a comprehensive set of regulatory compliance, accounting and monitoring services intended to help its clients with preventing, detecting, responding, and remediating negative examination findings, regulatory scrutiny, misconduct, and other prohibited acts.
“With an unwavering commitment to meeting our clients’ regulatory compliance needs, we hope the expansion and new service offering allows us to further establish ourselves as leaders in the regulatory compliance space as we continue to find innovative solutions to meet the rapidly changing market needs,” said Gigi Thompson, Chief Operating Officer. “Most regulators believe that the most important aspect of compliance at a firm is simply a series of elaborate systems and procedures. However, what is most important is the permeation throughout the firm of a ‘compliance culture.”
RegComp understands that small firms represent a critical portion of FINRA’s membership and often face regulatory challenges that are unique from their large-firm counterparts. With a staff comprised of a small group of former regulators and senior in-house staff at some of the nation’s most established financial institutions, RegComp is best situated to assist capital acquisition brokers with the supervisory guidance and best practices required to fulfil obligations.
With a national reach, the firm currently works with a range of and middle-market organizations, including private equity, venture capital, real estate, and hedge fund managers; fund of funds, secondaries and registered investment advisers advising pension funds, separately managed accounts, wrap accounts, mutual funds, and exchange traded funds.