Regulatory Compliance

Enforcement of the laws and regulations that apply to the financial services industry and capital markets is known as financial compliance.

Over the past ten years, the number of worldwide and local regulations has increased, making them more challenging for even a skilled professional to implement, follow, update, and execute. Examples of these regulations include anti-money laundering, conflicts of interest, new business ethics, and many more.

Investment Fund Regulation and Compliance

Investment funds operate within a highly regulated environment, subject to numerous laws and regulations. These regulations are designed to maintain market integrity and protect investors. 

Thales Capital comprehensively understands these regulations, including securities laws, anti-money laundering (AML) regulations, and Know Your Customer (KYC) requirements. By staying up-to-date with regulatory developments, we ensure that our clients’ investment funds remain in full compliance, minimizing legal risks and potential liabilities.

Compliance Requirements for Investment Funds

Compliance requirements for investment funds can be complex and multifaceted. Thales Capital offers a systematic approach to ensure your investment fund remains fully compliant at all times. This responsibility includes compliance with FATCA (Foreign Account Tax Compliance Act) and the European Market Infrastructure Regulation (EMIR), as well as policies and processes related to anti-money laundering and counter-terrorist financing.

Our compliance professionals diligently examine and interpret regulatory guidelines to identify the specific requirements applicable to your fund. We provide comprehensive guidance on various compliance aspects, such as registration, licensing, and ongoing reporting obligations, ensuring your fund meets the necessary compliance benchmarks.

Key Compliance Policies and Procedures

Regulatory policies and procedures for investment funds encompass the following key points:

1. Compliance with Securities Laws: Adhering to laws governing the registration, offering, marketing, and sale of securities to ensure investor protection.
2. Anti-Money Laundering (AML) and Know Your Customer (KYC): Implementing measures to prevent money laundering, terrorist financing, and verifying investor identities.
3. Internal Controls and Risk Management: Establishing robust systems to mitigate operational, financial, and compliance risks.
4. Disclosure and Investor Protection: Providing clear and accurate information to investors through comprehensive documentation and periodic updates.
5. Reporting and Record-keeping: Maintaining accurate records and timely reporting to regulatory authorities.
6. Conflict of Interest Policies: Identifying, managing, and disclosing conflicts of interest that may arise.
7. Valuation and Pricing: Implementing fair and accurate valuation methods for determining the fund’s net asset value.
8. Fund Governance and Oversight: Establishing effective governance frameworks, including independent oversight and comprehensive policies.

By adhering to these policies and procedures, investment funds ensure compliance, transparency, and investor confidence. Working with compliance professionals and legal advisors is essential to meet regulatory requirements effectively.

Compliance Audits and Reporting

Regular compliance audits and reporting are essential components of an effective compliance program. Thales Capital conducts comprehensive audits to assess your fund’s adherence to regulatory requirements and internal policies. 

We employ a systematic approach, reviewing documentation, processes, and controls to identify potential non-compliance areas. We provide clear and concise reports detailing our findings and recommendations, enabling you to address any issues promptly and maintain a robust compliance framework.

Compliance Risks and Mitigation Strategies

The evolving regulatory landscape presents inherent risks for investment funds. It is crucial to acknowledge these risks and take prospective action towards them. These risks include:

• Regulatory Non-Compliance;
• AML and KYC Violations;
• Insider Trading and Market Abuse;
• Data Security Breaches;
• Conflicts of Interest;
• Inadequate Recordkeeping and Reporting;
• Failure in Governance and Oversight.

Thales Capital recognizes the importance of proactively identifying and mitigating these risks. Our team works closely with clients to assess their unique compliance risks and develop tailored strategies to effectively mitigate them. By conducting risk assessments, implementing robust internal controls, and staying informed about regulatory updates, we help you navigate the ever-changing compliance landscape with confidence.