____________________________________________________________

Controls - Armor Plating

The Basle Committee has urged global financial institutions to guard against fraud and trader abuse as a significant component of operational risk. TRCI has conducted engagements which review the trading operation from the point of view of a rogue trader seeking to exploit weaknesses in existing controls, much the same way technology companies employ hackers to attempt to thwart their security measures.

This review includes:

• reviewing trading tapes to examine the conduct of trading staff

• evaluating the Policies, Procedures and Controls that govern the operation

• conducting an overview of the physical trading operation

• assessing the methodology used to measure the pricing validity of transactions

• providing specific recommendations as modifications or addenda to existing Policy, Procedure and Control documentation

While many institutions may feel that these functions are adequately performed and evaluated in-house, all too often internal staff simply lack the requisite experience to expose procedural deficiencies, or to see through complicated, front office schemes designed to disguise or misdirect such efforts.

TRCI's seasoned traders and investigators probe institutional control environs to uncover any existing flaws or oversights, conditions that have too often created financial havoc in trading rooms throughout the world.

TRCI has trained regulators, provided consulting and investigative services to providers and users of financial services, and conducted litigation support activities, both in and out of court, for organizations seeking legal remedies for trading issues. TRCI's experienced staff has established and managed institutional trading operations, traded in the trading room and testified as expert witnesses. The company is uniquely qualified to provide an intensive internal control review of professional trading organizations to determine whether weaknesses within the organization's policies, procedures and controls are ripe for exploitation.

TRCI's "Armor Plating Controls" engagements deliver specific recommendations and steps to implementation, enabling management to create the safest possible control environment available today, consistent with the Basle Accord's recommendations to guard against fraud and trader abuse. Back To Top ^

____________________________________________________________

Risk Management

TRCI's prides itself on its consultants, many of whom are former traders or trading managers that possess the rare ability to gain the respect and allegiance of groups (or areas) that are in conflict. They can then strip away internal political considerations, in order to identify the essence of an issue or problem and resolve it expeditiously.

This same trading/management experience is often enlisted to manage an exposure left in the wake of the sudden departure of an employee. TRCI can place seasoned market professionals directly on an organization's trading desk to both evaluate the exposure and determine the most prudent course of action that should be taken to manage it. Back To Top ^

____________________________________________________________

Performance is the most important measurement for an Investment Manager. However, clients need to be able to rely on the integrity and fairness of performance numbers provided. The Global Investment Performance Standards (GIPS®) as promulgated by the CFA Institute provides the underlying guidelines to ensure full disclosure and fair representation of investment performance. Although GIPS® is not required by law, violations of GIPS® compliance can lead to sanctions and fines by regulators due to misrepresentation of information to clients, recordkeeping requirements, etc. Today’s complex operations supporting GIPS® realize the multiple facets and challenges GIPS® compliance can cause, especially when it comes to performance measurement, systems-and accounting processes, legal, marketing and product development efforts and general risk management best practices. As firms seek to distinguish themselves from the competition and investors are increasingly requiring compliance with GIPS®, it is even more important to understand the intricacies and operational challenges the standards might require and ultimately affect the overall cost of compliance and the reputational impact of non-compliance. At TRCI we provide the following GIPS® related services:

• Training and Seminar programs (see also website “Seminars & Training")
• Verification & Pre-verification Services
• Current State Assessment, Future State Modeling and Roadmap Development Assistance
• Performance Examinations & Business Process Reviews
• Composite Construction and Maintenance Review
• Marketing Materials and Disclosure Review
• Policy & Procedure Review/Development & Enhancement Back To Top ^