Representative Engagements

A public company turned to Promontory to conduct an independent, fact-finding investigation as to whether the company had used or sold certain structured finance products that improperly affected the timing or amount of revenue recognized, or expenses incurred, on the respective parties’ financial statements. Promontory analyzed complex structured finance transactions involving millions of pages of documents, conducted extensive interviews of current and former company employees, and reported its findings to the Securities and Exchange Commission (SEC) and to the US Attorney’s office.

A global derivatives firm announced a large loss as a result of overnight trading in an employee’s personal account. The independent directors retained Promontory to review the trading incident, recommend corrective measures on a global basis, and report these findings and recommendations to the board of directors. Our review covered three regional centers – London, New York, and Singapore. The engagement was expanded to include operations in Australia, Canada, India, Japan, Hong Kong, and Taiwan.

Pursuant to a Memorandum of Understanding with a state securities regulator, Promontory was engaged by a financial services company to conduct an independent review of its broker-dealer policies and procedures related to the use by employees and contractors of laptop computers that contain customer personal and financial information. In addition, Promontory assessed the implementation of the broker-dealer policies and procedures and related practices to determine whether the company’s personnel were reasonably able to comply with the policies and procedures related to laptop security and whether the policies and procedures were internally consistent and consistent with state and federal law.

A large multi-state diversified financial holding company was facing an SEC investigation and a bank regulatory review, and needed to take a careful look at its risk management controls and provide related regulatory advice. Promontory conducted a comprehensive analysis of the company’s enterprise-wide risk management controls. As a condition to settling the regulatory issues, Promontory’s team was asked to review and analyze the company’s governance and management structure, internal audit and control functions, regulatory reporting, and risk-management structure, including compliance and financial reporting and accounting systems, and to report our findings and recommendations to the SEC and to the company’s board of directors.