Independent Compliance Consultancies & Court-Appointed Monitorships
Patomak Global Partners serves as court-appointed monitors for global financial institutions regarding Commodity Futures Trading Commission, Federal Reserve, Financial Industry Regulatory Agency, and Department of Justice issues.
Our experts act as independent compliance consultants during pending CFTC, Securities and Exchange Commission, and Federal Reserve actions pursuant to terms negotiated between regulators and respondents.
In this role, we review and recommend improvements to supervisory, compliance, operational policies, procedures, information technology systems, trade surveillance, and controls.
Expert Witness Testimony
Since Patomak senior experts are authorities in their fields, we frequently provide expert testimony in trials, arbitration proceedings, and investigations. Our expertise spans domestic and foreign jurisdictions, with team members serving as experts before U.S. and foreign courts and regulatory bodies on behalf of clients among commercial banks, cryptocurrency companies, investment advisors, broker-dealers, public companies, and professional firms.
Our team assists counsel in legal, regulatory, and transactional issues involving major financial firms and collaborates with counsel to develop litigation strategies. The team then assists counsel with preparing for depositions and enforcement interviews. Patomak’s experience and vision help clients develop effective litigation strategies in preparation for depositions and enforcement interviews.
Crisis Management & Investigation Issues
We work with law firms to support financial institutions during high-profile regulatory investigations. In doing so, we provide expert-level insights to aid preparation for interactions with regulators and Congress on sensitive issues.
Examples of Patomak Global Partners engagements related to litigation support and enforcement include:
- Served for three years as a court-appointed monitor for a major non-U.S. swap dealer pursuant to a CFTC enforcement action, which included reviewing, assessing, and recommending enhancements to the firm’s swaps reporting and related business continuity and disaster recovery programs.
- Served as the mandated independent compliance consultant for several broker-dealers, investment advisers, swap dealers, and futures commission merchants assessing compliance with required undertakings regarding off-channel communications and record retention requirements.
- Developed enhancements to the trade surveillance framework of a large bank’s futures commission merchant serving as an independent monitor subject to a CFTC and New York Attorney General settlement agreement.
- Served as an independent compliance consultant for a major financial firm regarding its internal audit function and IT operations processes.
- Conducted an independent review of a large global bank’s fixed income transaction reporting to FINRA.
- Served as expert witness in cases related to the role of directors during IPOs.
- Served as expert witness in high profile securities fraud case.
- Provided expert testimony regarding inconsistent statements of an adverse party to a cross-border merger before the Directorate General for Competition of the European Commission.
- Delivered expert testimony regarding the materiality standard under federal securities laws and the design and implementation of corporate disclosure processes and internal controls.
- Provided testimony to the SEC and PCAOB on issues regarding relations between U.S. regulators and the Chinese Securities Regulatory Commission.
- Conducted an independent review for a large private equity fund at the request of institutional investors regarding valuation issues and cybersecurity.
- Assisted a major law firm in providing legal advice to a large hedge fund regarding its process and reporting obligations for blue sheets data.
- Conducted an independent governance review in connection with a joint Federal Reserve Board and CFTC action for the board of directors of a systemically important financial market utility.
- Assisted a leading law firm in the preparation of a letter to the CFTC Division of Enforcement regarding the definition of “actual delivery” under the Actual Delivery Exemption.
- Advised an investment bank, pursuant to its DOJ non-prosecution agreement, on enhancements to address compliance issues including mortgage-backed securities sales practices and bond traders’ compensation policies and practices.
- Supported a large hedge fund’s responses to regulatory inquiries during an existential moment, including advising on media relations and supporting the integration of media interactions into legal strategy.
- Assisted with a major law firm’s response to an SEC inquiry targeting a decentralized cryptocurrency trading platform’s structure and activities.
- Collaborated with counsel to successfully address the concerns of community groups and consumer organizations threatening to block a bank merger, helping facilitate the transaction’s success.
- Worked with government affairs and legal department personnel to prepare executives at major financial firms under public scrutiny for Congressional testimony, including advising on related media strategies.
- Assisted a law firm in providing support to a major financial firm’s responses to a Congressional investigation, including hosting mock Congressional committee sessions to prepare executives.