The Lysis Group can assist firms in the asset management industry ensure compliance with evolving regulatory requirements including mitigation of financial crime risks and maintaining the integrity of their operations.
In the UK and EU we have extensive experience of compliance with all key regulatory requirements including the Undertakings for Collective Investment in Transferable Securities (UCITS) Directive, the Alternative Investment Fund Managers Directive (AIFMD) and MiFID II (the Markets in Financial Instruments Directive II). In the UK we additionally support compliance with the Financial Services and Markets Act 2000 (FSMA) and with the requirements defined in the Financial Conduct Authority (FCA) Handbook, such as AML and CASS. In the United States we are familiar with compliance with regulatory requirements including the Investment Company Act of 1940, the Investment Advisers Act of 1940, the Securities Act of 1933, the Securities Exchange Act of 1934 and the Dodd-Frank Wall Street Reform and ConsumerProtection Act. We are also familiar with the regulatory approach of the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
We are experienced in working across the network of firms involved in the industry including Asset Management Firms, Custodian Banks, Fund Administrators and Transfer Agents. For example:
For asset management firms we have:
For custodian banks we have run 2nd Line of Defence and 1st Line of Defence compliance programmes.
For fund administrators and transfer agents we have run on-boarding for complex portfolio take-on programmes, including complex structures involving multiple layers of entities, making it challenging to trace the ultimate beneficial owners and assess the associated risks.
In the above situations we have deal with:
Lysis specialises in AML/CFT Risk Management Framework creation and enhancement, assisting fund managers to:
View our Optimisation of Financial Crime Processes insight
We are highly experienced in Cross-BorderOperations, each jurisdiction with its own AML regulations, creating a need for comprehensive compliance strategies that address diverse regulatory requirements.
Lysis can provide ongoing advisory services, including horizon scanning services, thereby ensuring that fund managers remain up to date with changing AML regulations and industry best practices.
We can support new entrants to specific jurisdictions by assisting firms to navigate the regulations and build a strong relationship with the relevant regulators.
Lysis can provide advice to fund managers on how to achieve cross border compliance in their interactions with other jurisdictions in the EU, US, UK, etc.
Lysis can support firms ensure compliance with sanctions regimes by creating robust sanctions screening policies and procedures.
We are well plugged in to the Evolving Regulatory Landscape for AML which is continuously changing, requiring fund managers to stay updated with the latest changes and ensure their AML programs are adaptable.
Lysis Anti-Financial Crime specialists can ensure compliance with relevant regulatory requirements and industry best practice by conducting regular independent reviews of the fund manager’s AML programs and AML Risk Controls Framework: gaps can be identified and recommendations for improvement provided.
We offer short Health Checks and more in-depth Maturity Assessments, learn more here.
Regular stress testing of the firm’s AML controls against risk frameworks will help maintain compliance with regulatory expectations and Board peace of mind.
Lysis’ CLM consulting services include Target Operating Model (TOM) definition, systems and data source selection and implementation and CLM process efficiency improvements. We also have the necessary skills and experience to assist your firm to compile, review and optimise FC controls across the entire funds CLM process since we focus on the overall chain of client/counterparty activities. The objective is to encourage retention, improve customer experiences, and maximise profitability for the firm while remaining fully compliant.
We are familiar with the the high volume and frequency of transactions in fund management which require robust monitoring systems to detect suspicious activities without causing delays in operations. We are also familiar with Integration of Technology and implementing advanced technologies such as AI and machine learning for AML compliance.
We can assist firms to assess the efficiency of their CLM operating model and processes and embark on a programme of realignment followed by transformation and optimisation. The method focusses on people, process and technology over a 2-3 year timeline. We have seen efficiency gains in excess of 55%.
The business operations division of the Lysis Group, can assist fund managers in the following ways:
Lysis can provide regulatory experts to provide temporary or more permanent MLRO guidance and oversight. We can also provide interim MLROs/DMLROs.
Lysis SMEs can assist with the preparation and submission of Suspicious Transaction Reports (SARs/STRs) and other regulatory submissions.
Lysis can also support fund managers to manage their relationships with regulatrs by means of direct communication with the regulator, responses to compliance inquiries or audit inspections.
Lysis SMEs can perform review and QA of the AML programmes run for fund managers by their fund administrators and other agents.
KYC/ CDD Reviews of fund customers performed by Lysis analyst teams for Client Onboarding or Periodic Review purposes (offshore/onshore and hybrid models available to ensure operational cost-effectiveness)
Remediation of existing customer base post uplift of policies and procedures aligned with relevant regulatory expectations.
Enhanced Due Diligence reviews performed by experienced Lysis analysts for higher risk customers.
Our analysts are skilled at dealing with the fund industry’s typically complex structures involving multiple layers of entities which make it challenging to trace the ultimate beneficial owners and assess the associated risks.
View our Supporting Wealth Managers with regulatory requirements insight.
Performance of transaction monitoring activities aligned with relevant regulatory requirements.
Identification of Suspicious Transactions and writing of Suspicious Transaction Reports (SARs/STRs).
Ongoing monitoring of existing customer base against industry best practice sanctions, PEPs and adverse media databases.
Event Driven Reviews allow for a full refresh of Customer KYC when a significant change or potentially suspicious activity has been detected.
Periodic Reviews of existing Customer KYC in line with AML Risk Rating.
Ongoing TM reviews to identify any suspicious activity in customer accounts.
Our analysts are experienced at dealing with the high volume and frequency of transactions in fund management without causing delays in operations.
Screening of new and existing customers against international sanctions data bases to ensure compliance with both international and Irish/ EU sanctions regimes.
Screening of transactions to identify possible sanctions infringements.
Our award-winning managed service offering is fully configured to suit firms' individual risk appetites and operational controls and is perfectly adaptable to meet firms’ policy requirements in a dovetailed manner. This provides full AML compliance to local regulations “in a box”. We provide the people, processes and technology to on-board, monitor, review and off-board portfolios/customers/counterparties.
Our Managed Service can be combined with our 2LoD - MLRO Support & Interim MLRO/DMLRO service to provide a complete CLM and AML operation.
Customers for this service include various investment funds.
View our An Award-Winning Managed Service Offering insight.
Lysis Academy can support your firm’s specific staff training needs by providing:
Chief Executive Officer
Head of South Africa Operations
Non-Executive Director
Senior Associate
Lysis works with a number of like-minded niche funds management specialists to supplement and enhance our services to the funds and investment management industry.
We service a global client list from offices in London, New York, Singapore, Dublin, Paris and Cape Town.
