Futures and Commodities

NFA Registration

Registering with the NFA as a Commodity Pool Operator (CPO) or Commodities Trading Advisor (CTA) can be a time consuming process. An inefficient filing can result impact potential approval or result in costly delays. To facilitate this action, BRC provides various consulting services including but not limited to:

• Coordination, completion of necessary documentation, forms and supporting exhibits for NFA filing;
• Offsite analysis/assessment to determine the impact of the proposed changes to supervisory (principal) personnel and office locations to adequately address identified items upon NFA filing submission;
• Update and customization of written supervisory procedures and supervisory controls pertaining to risks associated with subsequent changes (as, applicable);
• Assistance in preparing customized forms and processes resulting from the proposed changes;
• Preparation of NFA regulatory responses; and
• Participate in regulatory conference calls and/or meetings pertaining to the NFA filing.

Policies/Procedures Development and Review

BRC’s consultants understand that NFA members and CFTC registered firm’s Policies and Procedures are often considered the cornerstone to a successful compliance program. Based upon the unique characteristics associated with each type of entity, BRC works with its clients to ensure that their Policies and Procedures are truly relevant, customized, and updated to meet each client’s current business practices and existing regulatory requirements. BRC also understands that even the most robust Policies and Procedures may become outdated over time if not periodically reviewed and appropriately revised to meet the changes of a firm’s business and fluid regulatory requirements. As regulatory examination findings are often related to “Inadequate Policies and Procedures”, it is essential for each NFA member to conduct a periodic review of its procedures for adequacy. BRC provides an independent analysis and regulatory insight to each of its assessments, whether you are in need of a new compliance program structure, or are seeking the peace of mind associated with knowing that your procedures are appropriate and up-to-date. BRC’s clients also rely on its consultant’s ability to develop new policies and procedures when it has a material change in its business model.

Anti-Money Laundering (AML) Reviews

Pursuant to NFA Compliance Rule 2-9(c) and the USA PATRIOT Act NFA members are required to annually review their anti-money laundering (AML) programs to ensure procedures have been properly implemented and meet regulatory expectations. The annual testing must be completed by a qualified independent third party, in an effort to be certain they are meeting regulatory requirements. Firms will benefit from the direct regulatory, consulting, and industry experience of BRC’s consultants, who have conducted countless of AML reviews/investigations of varying size financial institutions. B RC’s AML Audits are customized based upon the type of financial institution being reviewed and the specific risks faced by the organization. Although the risk based focus varies by organization, BRC’s reviews typically assess the following areas:

• Review and analysis of the firms AML Written Policies and Procedures;
• Conduct interviews with the firm’s key personnel directly involved in establishing and implementing the firm’s overall AML program;
• Review and assess the adequacy of the firms Customer Identification Program specific to the customer base profiles and geographic locations;
• Review of suspicious activity monitoring activities and reporting requirements;
• Review of money movement and transaction activities;
• Review and assessment of the firm’s annual AML training program; and
• Review and report any AML deficiencies and identify corrective actions.

Upon completion of our reviews, BRC will provide your firm with a detailed customized report outlining our findings, observations, and recommended actions pursuant to the requirements of the NFA Compliance Rule 2-9(c) and USA Patriot Act. Depending on your firm’s specific needs, BRC is committed to maintaining an ongoing partnership with your firm to provide customized solutions for all compliance related aspects of your firm’s business activities.

Customized/Bundled Compliance Solutions – Diazo Program

BRC offers bundled compliance services that enable NFA members and CFTC registered firm’s to customize products and services that fit their programs targeted areas, while keeping each client’s budgets in mind. The services offered through our Diazo Program have the effect of adding experienced compliance professionals to your firm’s compliance staff, without the related staffing expenses of full-time hires. Our Diazo Program packages can be modified in duration to fit your organization’s specific needs and can be implemented based upon risk parameters to accommodate your budget. You can select from any combination of BRC’s broker-dealer services to establish your own personalized solution. If unsure of the most beneficial services to select based upon the risks of your organizations business activities, BRC can incorporate a risk based review service upon inception of our relationship in order to provide targeted recommendations concerning the services that would address the areas of your compliance program requiring further enhancement.

CPO Compliance Consulting

BRC can assist your firm with fulfilling ongoing annual and quarterly CPO related compliance reporting obligations. BRC’s CPO compliance support services are targeted at augmenting existing firm processes and infrastructure. Through its services BRC will assist the firm in developing customized procedures and organizational matrix corresponding to each commodity pool. BRC will conduct a gap analysis to identify potential vulnerabilities and assist the firm in identifying modification to existing controls and infrastructure. In addition to related CPO filing requirements, BRC can also assist with:

• Self-Examination Checklists;
• Business Continuity Reviews;
• Privacy Policy and Vulnerability Assessments;
• Electronic Trading Systems Reviews;
• Annual Questionnaires and Updates;
• Ethics Training;
• CPO (Quarterly) filings; and
• Financial filings.

Risk Analysis and Mock Audits

BRC specializing in conducting risk based analysis and mock audits of NFA member firms. BRC’s reviews are targeted at identifying potential vulnerabilities or regulatory inconsistencies prior to NFA examination. BRC’s audits are a proactive measure to ensure each firms compliance program is in line with regulatory requirements and expectations. Many firms discover their vulnerabilities or risk during regulatory examinations. Unfortunately, once items are identified in this manner organizations are potentially subject to sanctions for violations, including fines, suspensions, etc. BRC’s consultants have conducted countless simulated reviews to assist firms in identifying if compliance controls are adequate to address each business area prior to being identified by regulatory staff. BRC’s Risk Based Assessment Reviews will result in an in-depth evaluation of your firm’s activities based upon the methodologies utilized by regulatory staff specific to your business activities. Upon completion, BRC will communicate its observations and remain committed to assisting you with corrective measures and required actions. In addition to mock audit services, BRC also provides regulatory examination onsite assistance during NFA audits.

Compliance Training and Education

BRC will provide customized training to your firm personnel on the requirements regulatory framework associated with your business model, as well as discuss what to expect during an NFA examinations. BRC can conduct the training onsite at your firm or remotely in order to reach all required parties and factoring your firms’ budgetary considerations. Additionally, BRC can provide enhanced training to compliance managers in relation to regulatory examination techniques and risk identification in order to further develop your firms overall compliance program and detection capabilities. Adequate and robust training is often a mitigating factor analyzed by examination staff, so enjoy the peace of mind that your Code of Ethics and training program has been customized by BRC specific to the risk activities of your firm.