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Securities Companies
Securities Companies FAQ
100 answers for Securities Companies, Investment Banks, Asset Management, and Prime Brokerage
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🟥 A. Securities Legal Position (1-20)
1.
What is Lendler's classification for securities companies?
2.
Is registration under the Financial Instruments and Exchange Act required?
3.
Involved in trading of securities?
4.
Do you perform brokerage/intermediary of securities?
5.
Does Lendler become a Broker?
6.
Does it infringe on securities company license areas?
7.
Involved in securities trade execution?
8.
Do you perform securities custody?
9.
Do you handle STO (Security Tokens)?
10.
Impact on securities reports/timely disclosure?
11.
Does Lendler fall under securities brokerage?
12.
Relationship with proprietary trading systems?
13.
Does it fall under investment advice?
14.
Involved in dealing?
15.
Do you perform sell-side research activities?
16.
Is Lendler's act classified as "Financial Instruments Business"?
17.
Subject to investment solicitation regulations?
18.
Does Lendler bear legal liability for securities accidents?
19.
Subject to regulation by securities supervisors (SEC/ESMA/FSA/FMA etc.)?
20.
Legal concerns for securities companies using it?
🟧 B. Transaction, Settlement & Clearing (21-40)
21.
Does Lendler become a settlement network?
22.
Does it replace securities settlement (DVP/RVP)?
23.
Do you perform Clearing?
24.
Impact on self-clearing?
25.
Interfere with Settlement Finality?
26.
Competition with CLS, SWIFT, DTCC?
27.
Impact on internal STP (Straight-Through Processing)?
28.
Impact on market access (exchange connection)?
29.
Does internal settlement algo change?
30.
Impact on clearing house risk management?
31.
Impact on exchange accounts?
32.
Does Settlement risk increase?
33.
Relation to securities management ledger?
34.
Responsibility for securities transfer?
35.
Impact on segregation of assets?
36.
Replace securities settlement infrastructure?
37.
Touch clearing collateral?
38.
Does Lendler become final approver of settlement?
39.
Who is responsible for bank intermediation/securities settlement?
40.
Possibility leading to securities accident?
🟩 C. Compliance & AML (41-60)
41.
Who is AML/CFT officer?
42.
Party to Travel Rule?
43.
Related to Insider Trading?
44.
Facilitate illegal securities trading?
45.
Fall under FATF VASP?
46.
Who checks sanctions lists?
47.
Create path for money laundering?
48.
Hold KYC info?
49.
Audit log contains customer info?
50.
Involved in Suspicious Activity Report (SAR)?
51.
Legal risk from held data?
52.
Involved in securities financial crime?
53.
Involved in market manipulation like Pump & Dump?
54.
Conflict of Interest?
55.
Impact on securities compliance?
56.
Traceability of asset movement?
57.
Additional burden for AML reporting?
58.
Responsibility for anti-social forces check?
59.
Reporting obligation to regulators?
60.
Risk from compliance perspective?
🟦 D. Data, Internal Control & Audit (61-80)
61.
Handle personal info?
62.
Boundary of PII/Non-PII?
63.
Impact on audit trail?
64.
Impact on J-SOX/SOX control?
65.
How are operation logs held?
66.
Materials submitted for audit?
67.
Need to change internal control of securities company?
68.
Contradict existing management system?
69.
Additional check by Internal Audit?
70.
Storage/deletion of financial data?
71.
Impact on external audit?
72.
Lendler system failure → Securities risk?
73.
Data retention obligation?
74.
Concern about lack of system trail?
75.
Information leakage risk?
76.
Subject to Vendor Risk Management?
77.
Content of vendor risk?
78.
Involvement in financial asset trail?
79.
Burden on securities back office?
80.
Max point asked in securities audit?
🟫 E. Business & Implementation (81-100)
81.
Merit for securities company to introduce?
82.
Depend on securities operations?
83.
Easy connection with existing host?
84.
Substitute for securities settlement?
85.
Speed up real-time settlement?
86.
Who manages uptime?
87.
Operational load?
88.
New specialized skills needed?
89.
Contact with trading department?
90.
Impact on Asset Management Dept?
91.
Competition with Prime Broker?
92.
Impact on securities company revenue model?
93.
Value for B2B customers (securities corporate clients)?
94.
Impact on accounting of securities company?
95.
Lendler involvement in securities accidents/op errors?
96.
Impact on Custody Dept?
97.
Point Risk Dept should be concerned about?
98.
Explanation to external stakeholders?
99.
Reputation risk for securities company?
100.
Conclusion: Is Lendler safe for securities companies?