Regulatory Filings. The Investment Company Act of 1940 and rules and regulations promulgated thereunder require investment companies to file an accurate and truthful regulatory filings. Our professionals will perform a full review of your firm’s organizational structure, potential conflicts of interest, supervisory oversight, investment advisory and fund service provider activities. With this information, we determine if the Fund’s regulatory filings are accurate in all material respects.
Compliance Program Design. Our Investment company clients range from small to large AUM-based funds and everything in between. We will make sure compliance program is tailored to fit your business. Our goal as a fund compliance provider is the peace of mind of the Board members including the Fund CCO. Our compliance programs include customized compliance policies and procedures and assesses preventive and deductive internal controls and report weaknesses to the Board.
Risk Assessment. Risk assessments and internal control reports capture the full inventory of compliance risks, and assign a risk rating for each compliance risk. This helps guide the drafting of written policies and procedures.
Compliance Policies & Procedures. Multiple laws may apply to your advisory business, e.g., Investment Company Act of 1940, Regulation S-P, state securities laws, 1933 Act, 1934 Act, and rules and regulations promulgated thereunder. Our knowledgeable and experienced consultants can draft and/or amend compliance policies and procedures to assist your compliance with such laws.
Compliance Testing. MCS can perform compliance monitoring and forensic testing required by your compliance policies and procedures, or to otherwise test certain aspects of your compliance program.
Annual Compliance Review. MCS can perform the annual compliance review required by Rule 38(a)-1 of the Investment Company Act and prepare the associated report regarding the adequacy of your compliance policies and procedures, and the effectiveness of their implementation. MCS’ reviews conform to guidance published by the SEC for the conduct of annual compliance reviews.
Marketing & Advertisement Reviews . MCS can analyse all your fund’s advertising materials (including websites, blogs, and social media) to ensure compliance with the advertising rule and state laws. As part of this, MCS can draft necessary disclosures to advertising materials to assist in complying with your obligation to provide disclosure of all material facts.
Regulatory Examinations. In the event an SEC, MCS can provide on-site assistance serving as a contact for the regulators, participating in calls and meetings, assisting with document requests, as well as drafting responses to deficiency letters and regulatory inquiries.
Mock Exams. Because our Compliance Consultants are well seasoned professionals with in- depth SEC and state examination knowledge and experience, we and they can conduct a mock examination of your fund business, including interviews with key personnel, reviews of relevant documents and testing, and prepare a written report of our findings. We will gather the requested documents, review the documents for completeness, and organize these documents in SEC examination format.
Deficiency Letters. Because we have assisted with hundreds of SEC exams, we are experts in preparing responses to SEC deficiency letters.
Compliance Training. MCS can conduct compliance training for your entire organizations or for key members, e.g., chief compliance officers, board members. These can be done in-person, remotely via Skype/webinars or we can prepare materials for internal presentations.
Cybersecurity. MCS can help develop policies and procedures for investment companies to keep in line with regulatory requirements for protecting personally identifiable information. MCS also conducts staff training and compliance testing with respect to cybersecurity.
Business Continuity/Disaster Recovery Plan. MCS can develop plans to maintain effective business operations in the event of a significant business disruption, as well as periodic or annual testing.
Anti-Money Laundering. MCS can help ensure your AML program is appropriate for your fund. The AML audit should cover more than policies and procedures, it should include an independent assessment and audit the AML program, interviews of personnel and service providers, reviews and/or testing of processes and activities designed to uncover material gaps and/or weaknesses in the program.
Compliance Calendars and Regulatory Reminders. MCS develops customized compliance calendars to help keep advisers on track with legal requirements (deadlines for SEC and State filings), reporting obligations (deadlines for periodic attestations) and compliance testing.
Best Execution. Besides ensuring that your best execution policies and procedures are appropriate for your fund(s), MCS can hold or participate in best execution review meetings to guide the process. We can conduct periodic qualitative analyses to determine whether your funds are receiving best execution in accordance with SEC requirements and prepare written best execution reports.
Trade Blotter Surveillance. MCS can perform reviews of trading activity to identify issues that could cause concern to regulators such as front-running, window dressing, cherry picking, principal trades, cross trade issues and other areas.
Service Provider Supervision. MCS can develop policies and procedures covering all fund service providers and perform onsite compliance reviews.
Distributor. MCS can conduct due diligence of your distributor, develop an agreement, and assist in approving/renewing distribution arrangements. MCS can also develop supervisory procedures for the Fund CCO to properly document its oversight of distributors.
Edgar Administration. MCS can support all regulatory filings, including SEC filings, and perform annual registration renewals.
Regulatory Filings. MCS can draft and/or amend required regulatory filings to be submitted to the SEC, including Form N-1A; Form N-8A; Form N-PX; Form N-Q; Form N-8F; Form D, and other investment company filings. MCS can review draft versions of filings prepared by third parties for accuracy and completeness prior to filing.
Email/Instant Messaging Surveillance. MCS can conduct on-going surveillance of the adviser’s emails and instant messages to identify non-compliant activities and produce a comprehensive memo highlighting issues found.
Employee Trading Reviews. MCS can review compliance attestations each quarter to help Fund CCOs comply with the requirements of the Fund’s compliance policies and procedures.
Due Diligence Questionnaires/RFPs. MCS can conduct a compliance review of due diligence questionnaires and requests for proposals completed by service providers for any potential concerns.
Portfolio Compliance Reviews. MCS can perform reviews of portfolio holdings and trading activity to ensure compatibility with each fund’s investment objectives and disclosures in fund offering documents.
Undisclosed Disciplinary Action Reviews. MCS can help research and confirm whether any service providers have not disclosed disciplinary history and other material information that should have been reported to the board.
Outside Business Activity Oversight. MCS conducts research and reviews of outside business activities of the adviser’s supervised persons to identify any conflicts of interest.
Books & Records. MCS can create and maintain books and records required by the Investment Company Act of 1940.
Agreements &Contracts. MCS can review and update your fund agreements to ensure they comply with the requirements of the Investment Company Act of 1940.
Additional Services. Additional testing, reviews and consulting can be completed by our team on an à la carte basis, and rolled into whichever service may best fit your needs, or we can perform a one-time engagement.