SBSD P&P: Significant Effort
Substantial effort is required to develop the Policies & Procedures (P&Ps) necessary to comply with the SEC’s Security-Based Swap Dealer (SBSD) rules - whether revising existing Swap Dealer P&Ps and/or drafting new SBSD P&Ps. Firms may be underestimating the level of effort required to draft the new SBSD P&Ps, due to the misconception that complying with the SEC rules requires only minor incremental edits to the existing Swap Dealer P&Ps.
The responsibility to ensure compliance with the rules falls on the Chief Compliance Officer (CCO) and the Senior Officer. The SEC requires that the CCO take reasonable steps to ensure that the SBSD establishes, maintains and reviews written policies and procedures reasonably designed to achieve compliance with the Act and the rules and regulations relating to the business of a security-based swap dealer. The Senior Officer must also certify that after due inquiry, the SBSD has developed and implemented written policies and procedures reasonably designed to prevent violation of federal securities laws and the rules.
NextGen Strategic Advisors has developed a streamlined P&P implementation approach based on our hands-on experience assisting clients prepare to register their SBSDs. NextGen leverages our proprietary SBSD Accelerator Tool which analyzes 2100+ discrete rules to identify the specific compliance and implementation requirements. Our approach includes:
- Performing a detailed gap analysis of relevant Swap Dealer P&Ps
- Drafting and providing real-time SEC compliant edits to the P&P owners
- Finalizing P&Ps based on feedback from the owners.
This approach ultimately provides the desired SBSD P&Ps efficiently, cost effectively and in a ready state for approval by the SBSD’s governance committee(s).
NextGen Strategic Advisors is a management consulting firm with extensive SBSD Subject Matter Expertise. For more information on our SBSD services, please contact Gary Mandelblatt, Managing Partner, 908-313-1056, [email protected], or Donna Parks, Head of the P&P Practice, 917-882-0397, [email protected].