Oyster Consulting Blog

Oyster Consulting Launches New Bermuda Location

Mon, 23 Apr 2012 22:26:00 GMT

American Financial Firm Re-Launches Inter-Ocean Management as Oyster Consulting (Bermuda) Limited

Family legacy grows with firm focused on anti-money laundering and regulatory compliance.

HAMILTON, Bermuda, March 19, 2012: Since 2008, Virginia-based Oyster Consulting, LLC has brought financial firms across the United States the sophisticated, expert support necessary to navigate today’s volatile economic and regulatory environments. Now, Oyster Consulting is launching a platform for its services in Bermuda through Oyster Consulting (Bermuda) Ltd, previously Inter-Ocean Management, Ltd. A Bermuda company established through a private act in the 1960s, Inter-Ocean Management was continually maintained by respected insurance executive Brian Hall, OBE — even during his tenure as Chairman of Johnson & Higgins (Bermuda) Ltd.

Alison Morrison will lead Oyster Consulting (Bermuda) Ltd. as Partner and Managing Director, providing cost-effective, expert guidance for Bermuda institutions subject to Anti-Money Laundering and Anti-Terrorist Financing regulations. In this role, she leverages her experiences as Senior Vice President of Risk & Compliance and Money Laundering Reporting Officer for Bermuda-based Citi Hedge Fund Services. Alison will also be able to guide entities potentially impacted if future regulations expand to other industries in Bermuda and elsewhere.

“After more than 15 years leading major firms’ risk and compliance efforts, I look forward to applying my expertise to help both Bermuda-based and global entities

remain in regulatory and operational compliance in an ever-changing regulatory landscape,” says Morrison.

One of Oyster Consulting’s founders, B. Robert Hall (Rob), a Bermudian and son of Brian Hall, met Alison at the annual Cup Match holiday three years ago. He immediately realized his firm and her Bermudian Anti-Money Laundering expertise should establish a way to collaborate in the future.

“For some time, we recognized the need to provide offshore businesses with high-quality, effective advice from acknowledged experts,” explains Hall. “The opportunity to launch this platform with Alison perfectly aligns with our services in the United States.”

Oyster Consulting (Bermuda) Ltd officially launches on March 22.

ABOUT OYSTER CONSULTING

Oyster Consulting supports wealth management, trading and asset-servicing firms with audit, regulatory, compliance, financial, strategic management, operational and technology consulting services while focusing on creating simplicity in a complex environment. Its team of consultants brings over six centuries of combined experience as senior executives, program managers, developers, department managers, business analysts and subject matter experts. Oyster Consulting’s practical solutions help broker/dealers, investment advisors, hedge funds, mutual funds, ETFs and private equity firms protect and grow their businesses.

Contact:

Alison Morrison

alison.morrison@oysterllc.com

Ensuring Consistent, Accurate Pricing of Illiquid and Hard-to-Value Securities

Mon, 19 Mar 2012 15:12:00 GMT

When complying with the financial world’s ever-increasing regulation, one requirement causes compliance headaches for many firms: determining the value of your assets.

While traditional investments are reasonably straightforward, pricing illiquid and hard-to-value securities can feel more like a guessing game — and the process can be much more challenging for some businesses than others. For instance, how do you price:

Mortgage-backed securities?
Structured products?
REITs?
Athletic teams?
Highly specialized (and occasionally classified) equipment?

And the list goes on …

In fact, the topic is so charged and heavily questioned that the 2012 FINRA Annual Financial Regulations Letter addressing the detail opens by saying this issue “continues to raise concerns.” So, creating accurate pricing is absolutely essential. If your firm is a broker-dealer and has non-traded or illiquid assets, FINRA wants to see your valuation processes and procedures — regardless of whether those assets are in a client’s account, part of your inventory or held as collateral.

FINRA isn’t the only one concerned with valuation. At Oyster Consulting, we are working with many investment advisors who need support accurately and consistently valuing their assets —from private fund advisors that are now required to register with the SEC to real estate and hedge funds who want to mitigate their regulatory risks. Our consultants have the experience and understanding to address a wide range of illiquid and hard-to-value securities, and we are here to help protect you.

If you have questions about how your non-traded assets are priced or just want to ensure you’ve adequately documented your processes and choices, email me or call me at 804.965.5403. I may not always be by my phone, but I will always call you back.

How to Safely Outsource Financial Services

Fri, 09 Mar 2012 20:57:00 GMT

These days, financial services are so closely watched and regulated that diligently keeping up with all the reviews and regulations can be a tightrope act — and balancing the nuances on your own becomes a tremendous burden. At Oyster, we’re here to help ensure you have the support and guidance necessary to avoid tripping over any regulatory updates by staying on top of changes as they occur.

In my last blog post, I addressed FINRA’s Annual Regulatory and Examination Priorities Letter, which they released on January 31. Ensuring financial services companies comply with FINRA’s guidance is minimum expectation — and this year they selected a number of perennial hot topics for their Examination Priorities, including outsourcing.

At Oyster Consulting, we think outsourcing key functions will be the future of financial service success. We built our company on the strong belief that by offering thoughtful outsourcing, we can free financial service firms from the myriad of organizational and compliance details that distract them from focusing on their greatest opportunities and challenges and leverage our resources that keep us on top of the regulatory environment. But while outsourcing is an effective way to create efficiency, improve controls and manage risk, we recommend you also pay special attention to third-party compliance.

Like in years past, firms are still responsible for complying with securities laws, rules and regulations even if they use third-party vendors — but now FINRA is attempting to codify these rules in Regulatory Notice 11-14. In other words, if you take advantage of the many benefits outsourcing can provide, you must also ensure the people you rely on correctly conduct business, or you will be held liable.

At Oyster Consulting, we provide clients with everything they need to comply with this proposed rule — and can help you protect your firm before the proposal becomes law. If you have any questions or concerns about where you stand today or hope to be in the future, email me or call me at 804.965.5403. I may not always be by my phone, but I will always call you back.

The FINRA Annual Financial Regulations Letter: Not a Crystal Ball

Tue, 28 Feb 2012 22:20:00 GMT

At a time when new financial regulations seem to wait around every corner, having a crystal ball to see exactly what concerns and changes lie ahead would be extremely helpful! Sadly, there are no magical remedies to see the future. At Oyster, we spend countless hours reviewing regulatory information, industry changes and speaking with our friends to help our clients prepare for and protect their firm’s future by understanding how to comply with regulation and mitigate risk.

One resource we use is FINRA’s Annual Regulatory and Examination Priorities Letter. Recently released on January 31, their 2012 letter provides a view into some financial regulations that most interest FINRA this year. And for regulatory terms, that level of foresight provides some planning insight.

FINANCIAL REGULATION DEVELOPMENTS

After reading the 2012 letter, we immediately noticed that the Regulatory Program Developments section is shorter and less change-riddled than in recent years. Rather than addressing Dodd-Frank implementation or new FINRA rules and departmental changes, this year’s developments focus on the Risk Control Assessment — a survey FINRA will use to better understand the “granular operational and risk data” that helps them determine each business model’s innate risk levels. You can expect to receive this survey in the first quarter.

Along with the upcoming survey, this year’s letter addresses a number of examination priorities FINRA will focus on as they analyze members’ potential risky behavior. Over the next few weeks, we will highlight some of the critical priorities to address, including:

Outsourcing
Pricing of illiquid, hard-to-value securities
15c3-5
High-Frequency Trading

In the meantime, if you have any questions about the letter or want to ensure you’re complying with all financial regulations, give me a call at 804.965.5403. I may not be able to exactly predict the future, and may not always be by my phone, but I will always call you back and provide practical advice for facing uncertain times.

Regulatory Compliance With Massachusetts Information Security Laws

Mon, 06 Feb 2012 16:33:00 GMT

At Oyster Consulting, we help clients address a variety of regulatory compliance and operational requirements — and the laws often differ depending on whether we’re serving broker dealers, Registered Investment Advisors, hedge funds, private equity firms or mutual funds. Sometimes legislation impacts all of our clients. The new law out of Massachusetts is about to impact every financial institution that has customers living in the Bay State.

For the past few years, anyone with customers in Massachusetts has had to follow their state’s information security laws regarding confidential customer information, data in motion, data encryption and more — regardless of where the company is based. Starting March 1, however, a new law will require any third parties with confidential customer data to comply with the information security rules, too.

In other words, if you have customers in Massachusetts, you’d better be certain all of your third-party vendors — including offsite storage, outsourced operations, statement vendors, backup data, etc. — understand these regulatory compliance requirements. Whether you’re offshoring processes or outsourcing services, you and your organization could be legally liable for any potential information security breaches if you do not certify your vendors’ regulatory compliance.

As a third-party vendor, Oyster Consulting fully meets the Massachusetts standards, and we are working to help our clients ensure that their other relationships understand and abide by the information security laws, as well. If you’re unsure whether you and your vendors are in compliance, or you have questions on what they need to certify, don’t hesitate to call me at 804.965.5403. I may not always be by my phone, but I will always call you back.

Deciphering the New SEC Social Media Compliance Guidelines

Tue, 31 Jan 2012 17:40:00 GMT

After years of waiting, Registered Investment Advisers no longer have to guess how the SEC views social media compliance. On January 4, the SEC released new guidelines designed to help RIAs adhere to the Advisers Act Rule 206(4) – 7 and federal securities laws, including the antifraud, compliance and recordkeeping provisions.

During their analysis, the SEC found that many firms had social media policies and procedures — but a number of them did not specifically outline permitted and prohibited social networking activities. Rather than providing hard-and-fast rules for effectively creating these guidelines — like FINRA has — the SEC offers 13 “non-exhaustive factors” RIAs may want to consider when creating their social media policies and procedures. After reviewing these topics, I’ve boiled each one down to the questions you should ask yourself to ensure your policies and procedures are sufficient.

Social Media Compliance Questions

1. Usage Guidelines: What sites and functions are approved? Which social media channels are firm representatives prohibited from using?
2. Content Standards: Will you provide content guidelines, prohibit certain types of content or enforce other restrictions?
3. Monitoring: How will you effectively monitor social media usage?
4. Frequency of Monitoring: After analyzing risks, how often will you monitor posted social media?
5. Approval of Content: Should you approve content before an employee posts it, rather than after the fact?
6. Firm Resources: Should you outsource social media monitoring? Or do you have adequate, informed resources in-house who can handle these responsibilities?
7. Criteria for Approving Participation: How will you determine which social media tools to allow?
8. Training: How will you train employees on your firm’s social media compliance?
9. Certifications: Will you require firm representatives to sign a pledge certifying they understand and will comply with your firm’s rules?
10. Functionality: How do each tool’s functions and policies affect users — and potentially open you and your clients to risk?
11. Personal/Professional Sites: On what sites may firm representatives conduct business? What information can they share?
12. Information Security: How will you protect sensitive data from hacking and other risks?
13. Enterprise-Wide Sites: If you are part of a larger organization, how can you ensure firm-wide social media complies with the Advisers Act?

In addition to answering these questions, you also need to ensure you are up to speed on third-party content and recordkeeping responsibilities.

If you’re unsure whether you are in compliance with social media requirements, or you don’t want to lose out on the potential value social networking can provide, call me at 804.965.5403 and we can talk about your questions and concerns. The Oyster team and I are here to provide sound advice and help make sure you — and your company — remain protected in your social media conversations.

Private Fund Advisors: Form ADV Deadline Is Approaching

Tue, 24 Jan 2012 16:54:00 GMT

This year, the SEC has a new Valentine’s Day gift for Private Fund Advisors: Your Form ADV Parts 1 and 2 are due. Thanks to Dodd-Frank [and Madoff fallout], many firms that previously could avoid registering with the SEC through the Investment Advisers Act of 1940’s “private adviser” exemption will no longer enjoy this immunity. Now, most private fund advisors with at least $150 million assets under management must register by March 30, 2012 — and file their Form ADV by February 14 to allow proper processing time.

With only a few weeks before this due date, we know a lot of private fund advisors are scrambling to complete this process for the first time, but it’s not too late to find help. If you aren’t finished — or are concerned about mistakes and omissions — Oyster Consulting can work with you to:

Interview your leaders.
Craft your responses to ADV part 1.
Create your ADV part 2.
Draft policies, procedures and a code of ethics.
Complete the registration process.
Prepare for a visit from the SEC.

Oyster’s consultants are diligent, experienced guides who can help you comply with this new regulatory change for private fund advisors — but we aren’t miracle workers. So, we ask that any interested firms contact us by January 31, to allow adequate time to thoroughly support you.

Even if you prefer to prepare for these new requirements alone, don’t hesitate to call me at 804.965.5403 with any questions or concerns. I might not always be by my phone, but I will always call you back.

Regulatory Compliance Updates for Cost Basis Reporting

Wed, 18 Jan 2012 21:10:00 GMT

As the regulations keep on rolling in, I have a great New Years resolution suggestion for all broker dealers, registered investment advisers and financial professionals: Make sure your cost basis reporting systems are in line now — thanks to new IRS requirements, this tax season could be a doozy.

The Regulatory Compliance Situation

Last year, provisions from the Emergency Economic Stabilization Act of 2008 (aka “the bailout bill”) went live, requiring broker dealers to provide cost basis reporting for all equities. Additional changes began on January 1, 2012, expanding the IRS’ cost basis reporting requirements to include:

Mutual funds
DRIPs
Most ETFs
RIAs

The Risks

Discrepancies between your firm’s data and your clients’ 1099-Bs could create unwelcome issues, including client audits (which would certainly not be good for client relationships) and IRS penalties. While accidentally incorrect 1099-B cost basis reporting comes with fines up to $350,000, the penalties are unlimited for purposefully disregarding the new requirements.

What You Need to Do

To ensure regulatory compliance, you must engineer your systems to accurately track and report cost basis. If you are not absolutely certain about your data, we can help you prepare for reporting by:

Connecting you to the right data vendor.
Managing your costs basis projects.
Providing staff to help maintain and update correct cost basis information.

Accurate cost basis reporting is crucial — and can be much simpler with the right support. As you work to prepare for these new requirements, don’t hesitate to call me at 804.965.5403 with any questions or concerns. I might not always be by my phone, but I will always call you back.

Social Media Compliance Updates After FINRA Notice 11-39

Fri, 13 Jan 2012 22:43:00 GMT

Earlier this year, I wrote a four-part series on social media compliance, because few topics seem to generate as much uncertainty and confusion for financial professionals — and regulators — these days. FINRA presented notice 10-06 last January, but just as social media tools change rapidly, so does the guidance controlling them. Consequently, FINRA released regulatory notice 11-39 in August, with additional information on how firms must supervise and record their social media activities.

The new notice does not alter 10-06; instead, it gives direct responses to user questions regarding recordkeeping, supervision, links to third-party sites, data feeds and personal devices. Some of the further clarification includes:

FINRA supervision requirements differ for static and interactive communications, but the recordkeeping requirements do not.
Interactive content can become static depending on how you use it.
Firms must train and educate their employees regarding their specific social media policies and procedures.
Firms that “co-brand” a third-party site — including prominent placement of their logo — are responsible for all site content.
Firms must ensure social media compliance in all business communications — regardless of whether they occur on company- or employee-owned equipment.

Notice 11-39 offers brief explanations and 14 Q&As, but many firms still have questions about how to best protect themselves from social media risks. If you have any questions or concerns about your firm’s social media compliance before, give me a call at 804.965.5403. Ultimately, education, training and firm policies are the foundation of a healthy social media presence — and I’d be happy to help ensure you are protected.

Is There a SIPC in the Futures?

Tue, 22 Nov 2011 19:09:00 GMT

By Donald L. Horwitz, Contributing Editor

Managing Director, Oyster Consulting, LLC

Email: Donald.horwitz@oysterllc.com

Featured Commentary on Markets Reform Wiki, November 2011

Not to be too blunt, but the collapse of MF Global is a disaster for the futures industry. This is the same industry that has been able to stand before Congress every time there has been a market crash (1987, 1994, 2008, to mention a few) and say proudly that the customer segregation system works well. Now, however, that is not necessarily the case. And, more importantly, this turn of events is happening just as the regulatory agencies, Congress and the industry are trying to implement the final set of rule changes mandated by the Dodd-Frank Act of 2010.

Why is this collapse such a problem, you may ask? After all this was not the kind of systemic event that the country and the financial system faced in 2008 when Lehman, Bear Stearns, and AIG failed, and Merrill Lynch was rescued by Bank of America. While a nice sized and respectable firm, MF Global was not a Morgan Stanley or Goldman Sachs.

The real issue facing the industry is not what happened to the customer funds that were required to be set aside in a segregated account at a bank, (although clearly that detail is critical to the innocent clients affected by the shortfall) but how did it happen?

The segregation provisions of the Commodity Exchange Act and the regulations promulgated thereunder by the CFTC, govern the holding, investing and use of these funds so that if a futures commission merchant (FCM) does run into a solvency issue, at least the customer funds are safe. Moreover, the CFTC and the self-regulator for the firm (in this case the CME Group) are required to periodically audit firms for compliance with these rules. If the segregation computation is incorrect, alarm bells go off and the firm must immediately come back into compliance. The firm could also be tagged with fines and penalties.

It’s because this regime has worked well since it was adopted in the 1930s, that the industry has avoided the imposition of a government-authorized insurance fund similar to that of the Securities Investors Protection Corporation (SIPC). The industry's claim had merit that this additional protection on top of segregation was unnecessary. Recently, CFTC chairman Gary Gensler said segregation is the “heart of our regulatory regime.” Nevertheless, he also said in remarks prepared for a speech at the University of Chicago on Nov. 16, 2011, that “it is “critical that the CFTC finish a rule that will enhance customer protections regarding where clearinghouses and futures commission merchants can invest customer funds.”

Now, however, there may be a gaping hole in the system that apparently has been overlooked for years. What happens if the FCM does not properly segregate customer funds or uses the funds improperly or for its own account? This is not an issue for the clearinghouse as its obligations are to protect the other members of the clearing fund if one member defaults on its payments as a result of a customer failure. Clearing funds are not available to cover the improper use of customer funds by the firm or for that matter any other type of fraud or malfeasance on the part of the clearing firm. The only asset that may be available to customers in such a situation is a Directors and Officers Liability Insurance policy and even then it is probably not enough to cover this loss.

Catalyst for change

So, why not rethink the possibility of a SIPC-type insurance and claims process for FCMs? We understand that this concept has been resisted for years for very sound and just reasons including the fact that the segregation system works well. For the most part, there has been no pressing need to fix it.

The MF Global liquidation may be the catalyst. We now find that we have an on-the-run hybrid “SIPC" system imposed upon the futures industry without any rules and no customer protection fund. After more than two weeks into the crisis, the trustee crafted partial relief where some customers funds will be released. The trustee was able to do this only because the CME Group essentially offered to back up over-payments. Perhaps this process could be codified in the event of future situations.

Back in 1986, this writer was appointed a SIPC trustee for the liquidation of a broker/dealer in New York. During that proceeding, we learned the details of the operation, how customer claims were processed and how efficient the SIPC backed system worked. Customers either received their securities or replacements, or cash, as the case warranted. We also investigated the matter and determined that the cause of the firm’s failure was that the owner of the broker/dealer used customer segregated funds to help fund another venture. Because this was deemed fraud, we filed a claim against the insurance carrier, and when it was denied, we sued the insurance company and ultimately prevailed.

In this and other SIPC liquidation cases, the customers received their securities or cash as promised. There were no questions whether this would happen; it was only a matter of time. Because this process works, broker-dealer customers are assured that their funds are protected. SIPC is not the Federal Deposit Insurance Corporation that guarantees bank deposits nor does SIPC protect the customer from losses because of a stock's poor performance. What SIPC provides is assurance that investors will get their property back if the firm blows up. As it says on the organization's website:

“SIPC does not cover individuals who are sold worthless stocks and other securities. SIPC helps individuals whose money, stocks and other securities are stolen by a broker or put at risk when a brokerage fails for other reasons."

That type of comfort might be necessary to protect the integrity of the futures markets and restore customer faith in the system.

Chicago-based Donald Horwitz Consulting Joins Forces with Oyster Consulting

Thu, 17 Nov 2011 00:53:00 GMT

CONTACT:

       Ellen G. Resnick
       Crystal Clear Communications
       773/929-9292; 312/399-9295 (cell)
       eresnick@crystalclearPR.com

FOR IMMEDIATE RELEASE

Chicago-based Donald Horwitz Consulting Joins Forces with Oyster Consulting
Combined firms expand regulatory/compliance consulting practice with nationwide resources

RICHMOND, Va. and CHICAGO, Nov. 15, 2011: As financial services firms increasingly seek assistance to navigate a complex regulatory and business environment, Richmond-based Oyster Consulting, LLC and Chicago-based Donald Horwitz Consulting, LLC (DHC) announced today that they have joined forces to increase the depth and breadth of their individual service offerings. Led by Donald Horwitz, DHC’s addition to Oyster Consulting enhances the firm’s expertise in commodities, futures and options. Their combined forces also enable DHC clients to benefit from Oyster Consulting’s depth of resources and more than 40 consultants in seven cities nationwide.

Donald Horwitz opened DHC this fall, applying nearly four decades of expertise in senior regulatory, compliance and legal counsel roles in financial services and derivatives.

“We’re ecstatic about bringing someone of Don’s caliber and experience in the commodities, futures and options industries into the practice,” said Patrick Dennis, an Oyster Consulting Founding Principal and Managing Director.

Established in 2008, Oyster Consulting announced last month the opening of its Chicago office at 200 S. Wacker Drive. Horwitz will operate out of the new location, joining more recent firm additions, Mike Nolan and Pat Blackburn, former leaders at Terra Nova, The Chicago Corporation and Merrill Lynch.

Horwitz said: “Oyster Consulting has built an outstanding practice, and I’m thrilled to be able to offer clients the breadth of resources and related top-quality expertise that can augment the services I provide. In the short time since I opened my firm, I have seen significant demand for these services.”

ABOUT OYSTER CONSULTING

Focusing on creating simplicity in a complex environment, Oyster Consulting supports wealth management and asset-servicing firms with audit, regulatory, compliance, financial, strategic management, operational and technology consulting services. Its team of consultants brings over six centuries of combined experience as senior executives, program managers, developers, department managers, business analysts and subject matter experts. Oyster Consulting’s practical solutions help broker/dealers, investment advisors, hedge funds, mutual funds, ETFs and private equity firms protect and grow their businesses.

ABOUT DHC

Donald Horwitz Consulting was established in 2011 to provide regulatory, compliance and legal services to firms in the securities, futures and derivatives industries. Managing Director Donald L. Horwitz, formerly General Counsel and Chief Compliance Officer for some of the world’s most recognized financial institutions, is also Contributing Editor to MarketsReformWiki.

Oyster Consulting Opens Chicago Office

Wed, 19 Oct 2011 13:26:00 GMT

We are pleased to welcome industry veterans Michael Nolan and Patrick Blackburn to Oyster Consulting, LLC as we open a new office in Chicago, IL. Michael and Patrick will focus on operation and management consulting for trading and markets in Chicago.

Press Release

Regulatory Compliance Changes: Are You Ready for OATS?

Wed, 02 Nov 2011 11:56:00 GMT

As of October 17, FINRA’s new requirements for the Order Audit Trail System (OATS) are live — is your firm ready for these regulatory compliance changes?

Prior to the updates, the OATS recordkeeping and reporting requirements in FINRA Rules 7410 through 7470 only applied to orders for equity securities listed on the NASDAQ Stock Market and OTC equity securities. But now, FINRA is phasing in an expansion so that OATS Rules apply to orders for NMS stocks, as defined in Regulation NMS Rule 600(b)(47), including those listed on markets other than NASDAQ.

To date, FINRA is implementing the OATS Rule expansion to all NMS stocks in three phases based on the security’s symbol. Key changes include:

Creating standard values for Receiving and Originating Department ID fields.
Adding a new Order Origination Code.

Eliminating the Received By Desk ID.
Aligning the OATS Account Type Code with the NYSE Account Type Indicators.
Creating a new Exchange Participant ID field on all Route Reports identifying routes to a national securities exchange.
Generally requiring each reporting MPID to use unique Routed Order IDs and Branch/ Sequence Numbers each day.
Reducing the allowable clock drift from three seconds to one second, and requiring timestamps to be reported to OATS in milliseconds if the firm captures the time in milliseconds.

Many of our clients have been working closely with their technology partners to test the regulatory compliance changes prior to implementation, but this initial work is not enough. Without a consolidated industry testing process, testing every possible scenario before implementation was impossible, so firms should carefully review their OATS reports over the next six weeks to ensure they are complete and accurate. Pay special attention to the new destination codes and account type code fields to make sure you report them accurately.

As you work to ensure a smooth OATS implementation, now is the time to review your written procedures related to trade reporting to make sure they are in synch with regulatory requirements and your business practices. Oyster is fortunate to have key resources to help firms evaluate their trade reporting platforms and practices — if you have any questions about trade reporting or Oyster Consulting, call me at 804.965.5403. I might not always be by my phone, but I will always call you back.

Regulatory Compliance Now That Summer’s Over

Wed, 02 Nov 2011 13:18:00 GMT

I hate to be the bad news monger, but summer is over. The calendar (and thermometer!) might say we have a few more days before fall begins, but for financial professionals, Labor Day is the unofficial end of summer vacation season and beginning of annual requirement season. Of course, most people would rather be beach lounging than conducting an AML review or worrying about regulatory compliance. But, addressing these tasks now can help ensure you complete them thoroughly and on time — with as little pain and frustration as possible.

With less than four months left in the year, now is the time to finish required annual tasks and plan for 2012, including:

Broker/Dealer Annual Requirements

Deliver annual training/annual compliance meeting.
Conduct independent Anti-Money Laundering reviews.
Begin supervisory control testing, including FINRA Rule 3012 and Rule 3130.
Complete annual branch audits.

RIA Annual Requirement

Review Policies and Procedures against business practices and regulatory requirements.

Firm Responsibilities

On top of regulatory requirements, both broker/dealers and RIAs must:

Complete the annual renewal process. Annual renewals take time and effort, but they can be a great way to save money by removing unnecessary state registrations.
Finalize their annual budget and plans for 2012. A massive number of proposed regulation and legislative changes could affect your business in the near future, so you must make sure you are up to speed with what may come and adequately budget your resource needs.

If you’re wondering how you can possibly complete these tasks in time, Oyster Consulting is here to help. Unlike most people, we love analyzing minutiae and wading through regulatory compliance language to ensure we address each requirement efficiently and effectively. (How could that not sound fun?!) Whether you have a quick question or need complete advice and planning, call me at 804.965.5403 — I’m happy to help. I might not always be by my phone, but I will always call you back.

Oyster Consulting Is on the Move

Wed, 02 Nov 2011 13:41:00 GMT

Oyster Consulting's New Building

Oyster Consulting has grown significantly over the past three years — and as a result, we simply ran out of room to fit all of our experienced consultants. So, after months of preparation, we’re moving our headquarters down the street into a bigger Oyster space located at:

4405 Cox Road, Suite 150
Glen Allen, VA 23060

Our new office is large enough to house Oyster’s growing team of consultants who dedicate their time to supporting our clients’ complete financial consulting needs.
The move is mostly taking place on August 17 and 18, and we may experience some disruption in email and phone service Wednesday night and early Thursday. We expect the down time to be limited, however, thanks in large part to Rob Ketch at Comverge and Bret Westphalen at MABC.

Remember our last blog about business continuity planning, and how you never know what challenges your company might face? We prepared for transferring our phones, Internet and servers during the move, but certainly didn’t anticipate a major strike by our service provider in the process. Rob and Bret’s creativity, client focus and problem-solving skills have been critical to ensuring our team is available to clients — even when Verizon is not.

We look forward to using our new office after we complete the inevitable final scramble that comes with moving — and would like to thank our loyal clients, because without you, we would have no space to fill. In appreciation, we plan to host an open house in early October to formally thank our clients, consultants and friends who have supported Oyster Consulting over the years. Additionally, we will hold a CCO roundtable soon to discuss best practices for reporting and resolving issues. Please let me know if you would like to attend.

I also would like to personally thank Lacy Hatton, Cheryl Brown and Gladys Robinson for leading this project and coordinating the move. Oyster is fortunate to have consultants who are experienced transition managers, which has allowed everyone to stay focused on our clients and avoid distractions. We look forward to our next phase of growth and remain dedicated to providing the highest quality advice and support to our clients.

If you have any questions about our new space or Oyster Consulting, call me at 804.965.5403. I might not always be by my phone, but I will always call you back.