Independent Monitoring & Independent Consulting

  • Serving as Independent Consultant to a diversified financial services company in reviewing its Rule 506 policies and procedures.
  • Serving as Independent Examiner for a Swiss banking institution in connection with the Department of Justice Program for Non-Prosecution Agreements or Non-Target Letters for Swiss Banks.
  • Serving as Independent Consultant to a global financial institution to review and test its policies respecting compliance with Section 9(a) of the Investment Company Act arising out of the institution’s SEC settlement regarding its underwriting of securities.
  • Serving as Independent Monitor to a fund manager and its principal to review and assess the manager’s policies, practices, controls, recordkeeping and disclosures relating to conflicts of interest, affiliated transactions and cash management pursuant to their settlement with the SEC.
  • Serving as Independent Consultant to a broker-dealer in connection with its Municipalities Continuing Disclosure Cooperation settlement.

Looking Forward

Regulators will continue to require independent monitors and independent consultants as part of their settlements in situations where the regulatory authority requires assurance that the settling party will implement remedial measures and regularly monitor for their operational effectiveness and compliance. The continuing trend is for settling parties to achieve reasonable compliance, through their own efforts or those of an independent third party, before entering into the actual settlement so that settling parties receive credit for effective remediation as part of the settlement terms.