Business Issue
The client engaged fscom to conduct Client Money Due Diligence on five regulated entities of a global FX business they were in the process of acquiring. The aim of the project was to identify the risk that the client faces in relation to breaches in the Client Money and Regulatory Capital systems of the target acquisition and to identify the capital and costs required to correct any material issues identified.
Solution
fscom carried out a due diligence examination of the regulated entities, which were conducted against the relevant client money rules in that jurisdiction. They provided a due diligence report for each of the five entities which included gaps in the systems and controls, recommendation on how to remediate the gaps, potential regulatory response to gaps and costs to remediate the gaps.
Benefits
The client received five comprehensive due diligence reports for each of the regulated entities which assisted them in identifying gaps in the systems and controls in relation to Client Money and Regulatory Capital and provided guidance on the remediation measures that are necessary to correct the gaps. The reports also highlighted regulatory consequences of the gaps and the costs and resources to remediate them. This provided the client with a clear picture of the risks they may face through acquiring the target firm.
Client
Feedback
The client expressed their gratitude for fscom's support with the acquisition and were delighted with the expertise and knowledge of the fscom team. They stated the fscom team were a pleasure to work with and made the process as straightforward as possible.
