The broking market has continued to evolve fast since the financial crisis. The largest investment banks and traditional interdealer brokers now compete with an array of niche and specialist players. There are now a significant number of small to medium size firms in the broking sector, including:

  • Introducing brokers – particularly from UK, EU, US, India and Middle East offering access to trading opportunities in their home markets.
  • Retail brokers - offering stockbroking, CFDs and Forex products to retail customers.
  • Commodity brokers – freight, iron ore, coking coal, steel, fertilizer derivatives - typically arranging deals in exchange-traded derivatives contracts.
  • Securities-based Crowdfunding operators – facilitate the offering of securities issued by companies to investors (including retail investors) by means of a platform.

The regulatory landscape for broking firms

The regulatory environment faced by broking firms is not as tough when compared to the onerous requirements introduced by the EU’s Markets in Financial Instruments Directive II (MiFID 2). Similar to regulators across major jurisdictions, the focus by the MAS and SFC continue to be on safeguarding the interest of investors (in particular retail investors), financial crime controls (AML/CFT), market abuse surveillance, culture & conduct, handling of customers’ moneys and assets, transaction reporting (derivatives contracts) and best execution.

How we help brokers

We understand that a one-size-fits-all approach doesn’t work when you have a broad range of regulatory challenges. We pride ourselves on treating every client individually, and providing practical and commercial advice across all areas of financial regulation.

Licencing – we can help new brokers from concept to licensing from our offices in the UK, EU, US, Singapore and Hong Kong.

Global footprint –we assist established brokers in growing their global presence, by helping them to navigate the complex rules across different jurisdictions.

Compliance support –we partner with brokers to meet their local compliance obligations, through ongoing compliance advisory, implementation support, focused compliance reviews, and short-term resourcing.

Market abuse –Brokers are at the front line of the fight against market abuse. We help them to develop market abuse risk assessments, establish effective controls, and calibrate and implement surveillance solutions.

Financial Crime –We help brokers to meet their AML/CFT obligations and ensure strong controls are in place. We can do this by preparing key AML/CFT documentation including, AML/CFT risk assessments, frameworks, policies and procedures.