Case Examples

MSB, FinTech and Cryptocurrency – Consumer Compliance / Consumer Lending

Industry Leader in Consumer Leading Seeking Consumer Compliance Review

Bates Group was chosen to perform an independent review of a leading consumer lender's compliance management system based on our collaborative approach, depth of knowledge, and ease of information gathering to reduce the workload for the lender. Bates’ Independent review team is composed of non-bank financial institution experts from former Chief Compliance Officers to former state regulators. The comprehensive and collaborative approach we take with reviews provides clients with valuable recommendations and a polished final report.

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MSB, FinTech and Cryptocurrency – Money Transmitter Licensing

Multinational financial institution seeks to enter the US

Bates Group was chosen to navigate the complex process of acquiring and maintaining state money transmitter licenses based on ourwealth of experience in the space. Bates formulated a phased approach for licensing and bank account onboarding to layer into the US market in line with the client's business plan. The licensing team utilized its knowledge of the regulatory landscape to build up the program from FinCEN registration to policy and procedure development.

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MSB, FinTech and Cryptocurrency – MSB Consulting

MSB Needed Heavy Lifting Team to Handle Annual Review

Bates Group was chosen to perform the independent review of a leading Money Services Business (MSB) focusing on remittances in the US-Latam remittance corridor based on our collaborative approach, depth of knowledge, and ease of information gathering to reduce the workload for the MSB. Bates’ Independent review team is composed of non-bank financial institution experts from former Chief Compliance Officers to former state regulators. The comprehensive and collaborative approach we take with reviews provides clients with valuable recommendations and a polished final report.

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Regulatory & Internal Investigations

Advisory Account Reviews

The Regulatory & Internal Investigations team has assisted firms in reviewing Advisory Accounts for Fee Calculation, Inactivity/Underutilization, FA Book of Business Reviews, and Trading Away/Step Out Trading.

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Regulatory & Internal Investigations

Mutual Fund Direct (current FINRA priority)

Bates has provided two types of support to our clients, in relation to the potential supervision failures associated with direct mutual fund business: a data review and a manual supervisory review.

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Insurance and Actuarial Services – Insurance

Universal Life Insurance

When an estate-initiated litigation against an insurance agency involving universal life insurance policies that had lapsed, Bates was engaged to calculate the hypothetical premiums that would have been required to keep the policies in force. We provided a potential damages calculation which included hypothetical insurance premiums and death benefits discounted to present value. Our expert was also able to consult on the suitability and sales practices involved with the sale and maintenance of the universal life insurance products.

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Insurance and Actuarial Services – Insurance

Variable Annuities

Bates Group was retained to assist an insurance carrier during a FINRA investigation alleging the carrier’s misrepresentations, suitability violations, and supervision in connection with sales and replacements of variable annuities. We analyzed thousands of pages of contract applications and internal documents pertaining to over 500 variable annuity exchanges to compile a database of annuity transactions. Data validation techniques were used to check the consistency and accuracy of the dataset. Once validated, the database was used to generate summary reports and schedules detailing our findings related to the alleged misrepresentations and omissions, which allowed counsel to rebut allegations and negotiate a more favorable result. During the investigative process, Bates’ experts also consulted on the suitability and supervision of the annuity transactions.

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Regulatory & Internal Investigations – U.S. & Global Regulatory Investigations

Annuity/Life Insurance

Bates Group has been retained to analyze thousands of Annuity/Life Insurance contracts to determine gains or losses associated with Fixed/Variable/Indexed Annuities as well as Term/Whole Life/Universal Life/Variable Life Insurance products.

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Regulatory & Internal Investigations – Insurance and Actuarial Services – Insurance – Cyber Insurance

Share Class Disputes

The Regulatory & Internal Investigations team has assisted 30+ firms in responding to a variety of share class selection related issues.

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Securities and Financial Services Litigation & Consulting

Private Placements / Rule 144 Sales

Bates has assisted in matters arising from the sale of private placement securities, providing economic analysis of the market for private placements, the reasonableness of fees incurred on such investments, as well as performance comparison hypotheticals against other publicly traded comparable assets.

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Securities and Financial Services Litigation & Consulting

Options and Option Strategies

Bates staff and experts have provided both consulting and testimony services in matters involving options trading within a client account.

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MSB, FinTech and Cryptocurrency

Consumer Protection Operations

A client hired us to conduct an independent review of their consumer protection operations. This would be the client's first independent review of their consumer protection operations.

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MSB, FinTech and Cryptocurrency

Know Your Customer Alerts

A money services business hired us to address a significant workload arising from Know Your Customer (“KYC”) alerts.

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