Retail and Wholesale Broking

We work with broking firms trading for retail and institutional clients.

Over recent months, we’ve seen regulatory focus on brokers significantly increase. There’s been particular scrutiny on the  efficacy of surveillance arrangements, roles and responsibilities across the different lines of defence, the operation of controls in the first line of defence and governance and reporting arrangements.

If firms are engaging with regulators, looking to review existing frameworks or undertaking remediation, we work with them to ensure that their systems and controls are adequate, effective and sustainable.

Our Approach

In addition to macro systems and controls assignments, we’ve helped firms understand:  

The adequacy and effectiveness of surveillance
Including roles and responsibilities, alerts handling, resourcing, the robustness of technology and the management and escalation of suspicions.

Operational Resilience
In both trading and surveillance platforms and how firms identify weaknesses in technology that may create market issues.

Customer vulnerability and engagement
Including the communication of risks to the retail market, the nature of instruments available to different customer segments and  customer engagement during the trading process.

Management information
How it’s used to inform the firm’s governance of risks and issues from broking activities

Oversight and remuneration of brokers
How supervision is operated, conflicts of interest between trading and supervisory roles and the balancing of remuneration between compliance and performance.  

Brokers are also focussed on:

Consumer Duty
The specific requirements on firms in the retail markets; and

Diversity and inclusion
Considering resourcing at a macro level across both trading and control related roles.

We can provide the support and advice firms need whether they’re embarking on a material project, subject to regulatory scrutiny or looking for an evaluation of their systems, controls or governance.