Growth Case Studies

Regional Bank

Objective: Develop the business plan for a new wealth and investment management service.

Background/Opportunity

• The client is a strong and established regional bank in South Florida, the fifth largest financial institution in its state and one of the top 50 most profitable banks in the U.S. The client wished to serve an increasing segment of international and high net worth prospects moving to the region. To tap into this new target audience, the client planned to launch a wealth management advisory service.
  

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Challenge

• The client wanted help with assessing the market potential for the wealth management business and then designing the optimal operational structure to launch it.

InnReg's Solution

• InnReg developed a launch strategy leveraging the strong foundation built on the client’s history and longevity coupled with forward-thinking innovation.

Client Results

• The client has been acquired by a large global bank based in South America. The new management team is leveraging the InnReg business plan as a foundation for the launch strategy for its new wealth management and investment services program.

U.S. Brokerage

Objective: Launch a U.S.-based brokerage arm for an established broker dealer in South America.

Background/Opportunity

• The client is one of the largest retail financial institutions in its home market, currently managing more than $35 billion in assets. They identified South Florida as a geographic market with strong potential due to the large number of South Americans migrating to the region, the high concentration of high net worth individuals, and the favorable business climate.
  

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Challenge/s

• The client needed help in launching a new broker dealer in the United States without prior experience in the complex U.S. regulatory environment.

InnReg's Solution

• Advised on an operational and compliance stack that would optimize the client’s business model in the U.S.

Client Results

• Successfully launched in Miami as a FINRA-registered subsidiary of the Latin American bank.
• Continued achievement of business projections for opening and managing of institutional accounts and high net worth individual accounts for clients across the U.S. and Latin America.

Alternative Trading System

Objective: Help an alternative trading system (ATS) build a technology-based compliance platform to support its unique and disruptive business model.

Background/Opportunity

• The client came to InnReg looking to develop a sophisticated set of compliance processes and workflows to support a groundbreaking peer-to-peer ATS for retail investors.
  

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Challenge/s

• An ATS and its broker dealer operator are typically subject to enhanced regulatory scrutiny by their functional regulators, primarily FINRA and the SEC. The many unique components of the ATS’s business model, such as the near-total reliance on operational processes that were based on proprietary algorithms, compounded the frequency and depth of regulatory interactions.  While the broker dealer and ATS had a compliance program in place, the client wanted to upgrade its workflows and processes to optimize its compliance strategy, execute on it efficiently, and satisfy regulatory expectations.

InnReg's Solution

• Devised and implemented a comprehensive set of compliance processes to accommodate the complexity of the ATS business model.
• Leveraged fintech compliance expertise and experience in regulatory relations to satisfy regulators’ requirements and expectations.
• Successfully demonstrated the efficacy of the new compliance processes to three separate regulatory agencies.
• Advised on process design to ensure compliance with all regulatory guidelines, as well as scalability to accommodate the high volumes of users and transactions in the ATS.   
• Ongoing delivery of a fully managed, outsourced regulatory compliance solution, including having a licensed professional serve as the Chief Compliance Officer of the broker dealer and ATS.

Client Results

• The ATS has been able to facilitate a high-volume of retail transactions in a scalable, compliant manner.
• The ATS has become one of the largest in the US in volume of transactions.
• The client has begun expansion in foreign markets.

Digital Broker Dealer

Objective: Guide a bank through the processes of setting up and then operating a broker dealer subsidiary for international investors wishing to trade in the United States.

Background/Opportunity

• The client came to InnReg with a strong business idea, but needed guidance for navigating relevant regulatory regimes, building out its operations, and then supporting its compliance function once it launched.
  

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Challenge/s

• A publicly-traded foreign bank with an established presence in the U.S. wanted to be able to target retail investors from all over the world to invest in U.S equities. The client came to InnReg to seek in-depth, detailed knowledge on how to establish a compliant brokerage operation with a global footprint.

InnReg's Solution

• Conceptualization of the bank’s broker dealer compliance model for international investors.
• Leveraged compliance expertise and experience in regulatory relations to manage regulatory exams and inquiries.
• Devised and implemented a comprehensive set of compliance processes.
• Advised on process design to ensure compliance with all regulatory requirements for international investors participating in U.S. markets.

Client Results

• Successful launch and growth of the broker dealer’s international business.
• Positive outcomes of regulatory exams.
• Efficient compliance processes and workflows to maximize internal resources.