Compliance Department Strategy

OPPORTUNITY

A multinational insurance company managed $70B AUM in captive assets of its parent company and global affiliates.

The firm’s growth goal was to add $50B AUM over a 3-year period, primarily in non-US assets. The compliance function of the newly registered adviser was aligned and staffed to pre-registration goals. Executive management expressed concerns related to whether the regulatory risk of registration was adequately managed.

PROCESS

Initiated a collaborative analysis of regulatory risk associated with captive investment management resulting in a reorganization of the compliance function to accommodate both regulatory risk and the firm’s growth goals, including the development of a global services function and a professional development plan for key compliance professionals.

RESULTS

Formal presentations to the company’s Board of Directors were well received and the compliance department has been given additional robust responsibilities related to the implementation of a firm-wide risk management program.