SOLUTIONS

BROKER-DEALER SOLUTIONS

broker-dealer-solutions-icon2
Foreside provides strategic thinking, compliance-focused professionals who deliver a range of distribution solutions through our established broker-dealers, including private-label entities. Our distribution solutions take a partnership model approach. We understand your business, so our service offerings and programs, including policies and procedures, are appropriately tailored.

Foreside distributes over $850B of product for over 200 fund families through our broker-dealers. Foreside serves as the legal underwriter for registered funds (mutual funds and ETFs) and placement agent for private/hedge funds. Foreside provides our clients with an established broker-dealer framework and ongoing education for our clients to meet the changing SEC and FINRA regulatory landscape. Services include:

  • Reviewing, approving, and FINRA filing of fund marketing materials via our proprietary software, Foreside AdCompliance™, to coordinate marketing material review with SEC and FINRA
  • Negotiating and maintaining broker-dealer and selling agreements to facilitate sales of fund shares
  • Administering Rule 12b-1 fees and any load payments
  • Sponsoring and maintaining a NSCC membership participant number for domestic funds, collective trusts or foreign registered funds allowing for a cost-effective and time-saving alternative to the direct NSCC membership process
  • For private placements, entering into sub-placement agent agreements with selling broker-dealers to facilitate the sales of fund shares

As a strategic partner to your fund family, our experienced professionals stand ready to advise you regarding the regulatory, financial, operational and distribution requirements of your exchange-traded products (ETPs). We closely follow the expanding U.S. and international ETP market place which includes, rapid product innovation and varying strategies, such as index and active management, for equity, bond, and commodity fund types. Foreside is your representative to the Authorized Participant (AP) community, interacting daily with the APs, on your behalf. Foreside, as the legal underwriter for ETPs will:

  • Reviewing, approving, and FINRA filing of fund marketing materials via our proprietary software, Foreside AdCompliance™, to coordinate marketing material review with SEC and FINRA
  • Facilitate, negotiate, and coordinate the AP agreements
  • Provide call center technology for AP orders and advisors
  • Deploy FINRA-registered staff to receive AP orders on recorded lines
  • Facilitate the review and approval of all AP orders, including the transmission to custodians and advisors utilizing our proprietary order entry portal, ForesideXchange
  • Provide robust reporting to the asset manager and the Board

NSCC sponsorship under Foreside provides a cost-effective and time-saving alternative to the direct NSCC membership process for new funds. NSCC membership through Foreside allows our clients to benefit from the services provided by the NSCC. Foreside can sponsor (apply for, obtain and maintain) a NSCC membership participant number for registered funds including domestic funds, collective trusts, and foreign funds such as SICAVs and UCITs. Additionally, Foreside provides guidance to clients and their transfer agents with respect to administration, implementation, and maintenance of the funds’ operational policies and procedures to assist in NSCC compliance.

Foreside can assist with all aspects of your FINRA licensing needs for both registered and private funds, including:

  • Processing all appropriate registrations, tests, and renewals
  • Maintaining state and FINRA registrations
  • Conducting annual compliance meetings for all Reps, periodic on-site office exams and compliance training for all Reps
  • Administering FINRA’s Continuing Education Program
  • Establishing supervising principal at Office of Supervisory Jurisdiction (OSJ) location and provide training

 

Foreside is an Exempt International Dealer in all Canadian provinces and thus its, clients may market to certain investors in Canada. Foreside can also permit its registered representatives to conduct fund marketing activities to other foreign jurisdictions.

Foreside can maintain a ‘private-label’ broker-dealer on behalf of your firm, allowing you to focus on your core business. Foreside’s private label broker-dealer solutions provide an opportunity for firms to have Foreside own and manage a broker-dealer that is branded by a name you choose. By outsourcing all broker-dealer functions in a cost-effective manner, you are able to leverage Foreside’s best practices. Foreside will:

  • Implement and oversee all written supervisory procedures of the broker-dealer
  • Provide all broker-dealer officers, including a President, Financial Operations Principal (“FinOp”) and CCO
  • Respond to all audits of the broker-dealer by the SEC, FINRA, and state securities regulators
  • Maintain broker-dealer registrations in all jurisdictions
  • Prepare all periodic filings and reports to FINRA
  • Maintain all applicable broker-dealer books and records

Foreside offers customized, comprehensive and cost-effective consulting services to broker-dealer CCO’s, FinOps and their teams. Foreside’s experienced professionals design and support robust compliance and regulatory programs for broker-dealers.

  • Formation of a proprietary U.S. Registered broker-dealer
  • Broker-Dealer registration including managing the FINRA new membership application process and associated filings, infrastructure development, and regulatory requirements
  • Written Supervisory Procedures Development and Management
  • Program Development (Business Continuity Plan, Cybersecurity, AML) or Review with recommended updates
  • State registrations
  • Establishment of contractual relationships for required broker-dealer systems including email retention vendor, offsite storage, etc.
  • GAP Analysis and Risk Assessment
  • Examination Support & development of examination response program and team
  • Regulatory Filings
  • FinOp Support
  • Design financial controls and processes/maintenance of books and records
  • Review quarterly FOCUS filings

Foreside offers broker-dealer chaperoning services to foreign asset managers and broker-dealers that seek to market private funds in the United States without registering as a U.S. broker-dealer. Foreside will:

  • Provide an authorized registered representative to chaperone foreign associated person’s in-person visits to U.S. Institutional Investors “USIIs” and Major U.S. Institutional Inventors “MUSIIs,” as required
  • Review and approve foreign asset management or broker-dealer personnel who will market funds to USIIs and MUSIIs
  • Oversee the suitability assessment process concerning fund recommendations made to USIIs and MUSIIs
  • Conduct due diligence on the funds marketed by the foreign asset manager or broker-dealer
  • Participate in phone calls between the foreign asset manager or broker-dealer with USIIs, as required
  • Review and approve all marketing material prepared for USIIs and MUSIIs
  • Maintain all books and records required under SEC Rule 15a-6
CONSULTING SERVICES
consulting-services-icon2

Foreside takes a business-focused approach to consulting. This strategic alignment offers our team of former CCOs, attorneys and compliance professionals the ability to deliver practical, tailored solutions that are customized for your business.

With deep experience as an outsourced Advisor or broker-dealer consultants, Foreside creates a path to a solution, that matches your firm’s needs.

Foreside offers dedicated compliance consultants and Chief Compliance Officers for SEC-registered investment advisors and SEC-exempt reporting advisors. Our team of professionals include former in-house Chief Compliance Officers and attorneys. With a range of services, Foreside can meet our client’s specific needs as either an outsourced CCO or by providing customized support to an in-house CCO.

  • Assist with SEC Registration as an Investment Advisor
  • Compliance Consulting Support
  • Gap Analysis
  • Create and Maintain a Compliance Program and Calendar Tailored to the Firm’s Size, Culture and Business
  • Annual Testing/Reviews including Compliance Meetings and Mock Regulatory Exams
  • Training for Representatives
  • Marketing and Advertising Material Review Using our Proprietary Software, Foreside AdCompliance™
  • SEC Mock Audits
  • Examination Support
  • Provide an Interim Advisor CCO during a transition period

Foreside specializes in preparing and conducting mock SEC examinations to help prepare registered investment advisors for an SEC exam. Our seasoned professionals can identify operational, procedural and regulatory weaknesses and propose remedial actions in order to help control and manage risk areas that have been SEC focus points. Foreside will:

  • Deliver a mock audit request list to be completed by the advisor or sub-advisors
  • Work with the CCO to identify and review information the SEC may request in a routine SEC Examination
  • Review the advisor’s current compliance program to identify potential gaps with respect to Rule 206(4)-7
  • Conduct on-site interviews with relevant advisor personnel
  • In consultation with the CCO, review the Advisor’s operations to determine conflicts of interest and risk exposure
  • Review advisor’s Form ADV filings
  • Issue a written report of all findings that include general recommendations of enhancement with respect to Advisor’s compliance program, our evaluation as to the overall adequacy and effectiveness of the program and an assessment of the advisor’s readiness for an SEC examination

Foreside and its affiliated broker-dealers review more than 25,000 pieces of marketing material each year. This material includes fund fact sheets, websites, social media marketing materials, article reprints, presentations, annual and semi-annual reports, shareholder letters and broker-dealer communications. We believe that our success in this area is due to our advertising review compliance team’s industry and regulatory knowledge, and our ability to work closely with our valued clients and the appropriate regulatory bodies. Foreside will review, provide comments, and file, if applicable, all marketing materials via Foreside AdCompliance™, our proprietary internet based portal to coordinate marketing material review with SEC and FINRA. Foreside AdCompliance™, was designed with the user in mind – whether that be the Marketing Department, Compliance Department or Management Teams, our software is web-based, functional, comprehensive, and practical. In particular, the systems primary competitive advantage is its Work Flow Management which allows for customized workflows, collaboration with peers, progress tracking, audit trails, reporting capabilities, a single repository, disaster recovery, and is SEC Rule 17a-4 compliant.

As part of a rapidly expanding and innovating ETP market, Foreside offers solutions to some of the largest U.S. ETF Sponsors. Our professionals work with our clients on all the required components of starting an ETP including set-up, operations, regulatory requirements and distribution guidance. As a strategic partner to your fund family, Foreside is your representative to the Authorized Participant Community and the conduit through which your daily order activity is channeled.

  • Start-up consultation including industry, financial, operational, regulatory and compliance advice
  • Product Development – ETFs, Commodity Funds, and ETNs
  • Selection of potential service partners including Authorized Participant’s, sub-advisors, index providers, administrators/custodians

Foreside provides comprehensive and tailored compliance solutions to National Futures Association (NFA) registered entities including Commodity Pool Operators (CPOs). Our NFA team currently works with a diverse group of NFA-registered and affiliated firms. Foreside’s solutions provide “best practices” and ensure that 1933 Act CPO’s meet existing regulatory standards. We work with CPOs that are operated as a “stand-alone” entity or as part of a larger complex with other NFA-registered entities such as Commodity Trading Advisors (CTAs) or Futures Commission Merchants (FCMs). Foreside employs skilled compliance professionals (including securities attorneys) who have worked successfully with NFA-registered firms in the alternative and registered investment funds environment. Foreside will:

  • Assist clients with registration as a CPO or CTA and the registration of personnel to become Principals and/or associated Persons of the CPO/CTA
  • Develop written Supervisory Procedures (WSPs) and a customized Compliance Program Risk and Organizational Matrix for each of your commodity pools
  • Assess annual and quarterly NFA obligations and other specific compliance needs
  • Train client personnel on the requirements of their CPO or CTA Compliance Program and its regulatory framework, providing insight concerning NFA inspection preparedness
  • Serve as Security Manager

Foreside offers a consultative approach to help our clients with their asset raising success. Foreside’s experience in and passion for collaborating with our clients to navigate the complex distribution landscape allows clients to leverage our resources. This includes in-depth information about our broker-dealer, platform and RIA relationships, guidance on share class rationalization, best practices with regards to research teams, centers of influence and eligibility requirements, enhanced marketing opportunities, and comparative fee analysis.

More extensive engagements involve a results-oriented, integrated approach to help our clients construct a long-term plan to raise assets including the creation of a customized distribution strategy plan to supplement, refine or build out a client’s current efforts as well as the development of sophisticated sales strategies and product positioning to help differentiate and gain access to opportunities.

Foreside is also pleased to offer a sales reporting solution, in partnership with Broadridge. This discounted service, which has historically been cost-prohibitive to advisors with small and medium-size transaction volumes, gives our clients access to valuable information which helps develop and manage their asset growth plans and sales process.

Additionally, Foreside has partnered with Delta Data to offer a robust, comprehensive solution designed to help asset managers gain added insight into their intermediary relationships and distribution fees. Delta Data's Oversight Solution Platform is a suite of oversight products that leverages distribution transparency data integrated with reporting, analytics, and counterparty management. This platform allows Mutual Fund companies to increase the number of firms they review as well as increase the detail in which they review them. The solution also helps asset management firms create real-time dynamic board reports and guards against incurring SEC fines related to "Distribution in Guise."

Foreside’s Business Management professionals can also assist with initial service provider selection (including back-office transfer agent, Fund Administration/Fund Reporting agent, custodian, auditor, legal counsel, etc.). We have established strategic partnerships across all of the major providers in the industry and can assist you with the selection of an appropriate vendor to meet your specific needs, particularly with complex investment strategies.

OUTSOURCED BUSINESS SOLUTIONS
fund-officer-solutions-icon

Foreside offers a proactive, bundled or unbundled service model designed to assist our clients with a comprehensive and customized approach. We partner with our investment advisor clients to allow them to focus on asset management without sacrificing valuable internal resources to address distribution, compliance and industry best practices, while we manage the business, support distribution and navigate and the complex regulatory landscape.

Through Foreside’s Business Solutions, an advisor can also select a customized package of bundled services to best meet their needs.

Foreside can build a proprietary Registered Investment Company (“RIC”) from scratch, help support an existing RIC or “plug and play” through existing series trusts. Start-up services may include:

  • Establishment of the Trust
  • Preparation of all necessary filings
  • Product development consulting
  • Allocation of fixed and variable fund expenses
  • Fee structure and total expense ratios
  • Analytics and assessment for targeted subadvisors
  • Management and coordination of shareholder proxy and approval process for fund adoptions

Foreside’s Fund Officer model provides a hands-on tailored approach rather than an off-the-shelf program and places experienced and independent Fund Officers close to the Fund’s Board of Trustees. Foreside Fund Officers are often exposed to multiple administrators, counsel, and advisors, gaining valuable industry perspective and allowing for a better understanding of best practices.

President of the Trust

Foreside can serve as President of the Trust and assist investment advisors in cost effectively managing the business activities and oversight requirements of their fund business.

Fund Chief Compliance Officer

Foreside delivers independent Fund Chief Compliance Officer (CCO) solutions for many pooled products, including open-end, closed-end and exchange-traded funds. Foreside can also provide an interim Fund CCO during a transition period. Foreside provides an experienced, objective Chief Compliance Officer to implement a comprehensive fund compliance program with the below attributes.

  • Fund Policies and Procedures
  • Risk assessment
  • Compliance Log & Calendar
  • Service Provider Oversight
  • CCO Monitoring & Testing
  • CCO Board Communication

 

Treasurer Services (Principal Executive Officer & Principal Financial Officer)

Foreside’s Treasurer Services professionals interact with leading service providers, audit firms, and advisors, and continuously monitor emerging regulatory requirements to ensure your funds remain compliant.

  • Treasurer Outsourcing services
  • Sarbanes-Oxley Certification Reviews for fund SEC filings
  • Assistance with Disclosure control Committee structure
  • Assistance with Fair Valuation Pricing Procedures
  • Fund Contract Review
  • Assistance with Contract Negotiations


Anti-Money Laundering Officer

Foreside offers a range of Anti-Money Laundering (AML) solutions. Foreside’s independent fund AML Compliance Officer will conduct period reviews of the Fund’s AML program to incorporate new or changed regulation or best practice recommendations. Foreside will review the adequacy of the policies and procedures of the Fund’s AML program and its service providers, and assess the effectiveness of its implementation. Additionally, Foreside will design or review risk-based testing methods for the AML program’s policies and procedures and conduct an annual assessment of the fund’s AML program and prepare a report for the Board. Lastly, Foreside will attend any Board meetings as requested.

Foreside’s regulatory administration professionals package together regulatory filing, board meeting support & management, and corporate secretarial services – all brought to you by the team you trust for compliance solutions. Foreside keeps our clients compliant with applicable laws and provides best practice procedures and guidance. Foreside’s effective process management is designed to meet latest governance requirements. Foreside will serve as Fund Secretary or Assistant Secretary which will conserve valuable legal resources on your side. Additionally, we will handle the filing of our client’s proxy statements and related solicitation material with the SEC, attend Board meetings and coordinate record holder research and tabulation process.

Foreside AdCompliance™, is Foreside’s proprietary internet based portal to coordinate marketing material review with SEC and FINRA. Foreside AdCompliance™, was designed with the user in mind – whether that be the Marketing Department, Compliance Department or Management Teams, our software is web-based, functional, comprehensive, and practical. In particular, the systems primary competitive advantage is its Work Flow Management which allows for customized workflows, collaboration with peers, progress tracking, audit trails, reporting capabilities, a single repository, disaster recovery, and is SEC Rule 17a-4 compliant.

Additionally, Foreside can review, provide comments, and file, if applicable, all marketing materials through our legal underwriting solution or through our marketing material consulting solution. Please see those respective sections for more details.

Foreside combines a distinct understanding of industry best practices and web technologies to design and develop custom-built websites for our clients. We partner with our clients to strategize and create solutions to deliver a unique online presence. We specialize in:

  • Custom Website Design and Development
  • Hosting Solutions
  • SEC and Financial Feeds Support
  • Analytics Set-up and Maintenance
  • Content Organization
  • Access control Level Support Options
  • Extensive Search Engine Optimization
  • Domain Registration
  • Maintenance and Support
  • Paid search Advertising Setup and Maintenance

Contact Foreside

For more information about how Foreside can help you, please contact busdev@foreside.com or call Toll-Free: +1 866-251-6920 to speak with one of our team members.

      +1 866-251-6920

Contact Us

Please send us an inquiry anytime and we'll get back to you, asap.

Not readable? Change text. captcha txt