The trend for consolidation across financial services is showing no sign of letting up. In asset management, we’ve seen major change among the international players. In the wealth sector, not only are firms acquiring each other, but IFA businesses are being snapped up by large national players or by the burgeoning distribution arms of product providers. Private equity investment is increasing with an ever more varied range of targets affected by regulation, from fintech to motor finance to insurance intermediaries.
Those who get the process right will win, but regulatory problems – and the costs of cleaning them up – can be a huge cost drag on any acquisition strategy.
We help firms to solve regulatory problems through the M&A transaction lifecycle. From determining the regulatory health of a target firm, through the regulatory due diligence process, to helping integrate multiple propositions and platforms. However you’re affected by financial services regulation, we have experts who can help you make your merger and acquisition strategies successful.
Regulatory help across the M&A lifecycle
Pre-transaction due diligence
We can carry out an in-depth look at a target firm’s compliance systems and controls against regulatory standards. We’ve been conducting regulatory due diligence for buy-side and sell-side firms for many years and, as specialists, we understand what the regulator is looking for. We don’t just look at whether the firm has compliance issues at the time of the deal, we know what the regulatory trends are and how that firm might fare in future.
If you are planning an acquisition of a UK listed company, we can help you to understand what your obligations are under the takeover code, and ensure that you are compliant with the regulations.
A merger will inevitably impact upon the capital and liquidity requirements of your firm, and the firm that you are acquiring. Our prudential experts combine/consolidate two prudential governance structures. We can carry out in-depth work on governance documents including ICAAPs and ILAAs to make sure you stay compliant.
Target operating model design
Mergers and acquisitions necessitate the integration of two (or more) different operating environments, often with the aim of achieving cost savings and efficiencies. We can help you to design the new operating environment, across compliance, technology, governance, front office and operations to ensure the combined business is placed on a sound, compliant footing.
We can help you to build and implement a detailed integration plan from the commercial strategy laid out during the acquisition process, while making sure your compliance systems and controls meet regulatory expectations, and are sustainable – and scalable – as you continue to grow your new business.
Back book remediation
An integration process can unearth historic problems with a target firm’s products or services. Whether there are issues with anti-money laundering documentation, suitability records or questions on sales practices, we can help you get them sorted out.
Compliance systems and controls integration
When two firms are brought together, there can often be a mismatch with compliance integration. Bovill can help to align your systems and controls to optimise your commercial integration strategy.
Update to policies and procedures
While updating your policies and procedures is a necessary step in the M&A process, merging your compliance systems and controls, should be treated as an opportunity to review and refresh your existing policies. Bovill have extensive experience of drafting and reviewing policy documents, helping firms to take a pragmatic approach to meeting current regulatory standards.
Culture and governance
Focusing on your firm’s Culture and Governance should be at the top of your post-merger to do list. We can use our regulatory expertise to review your governance structure and framework, helping you to embed the right culture into your firm, setting the tone from the top.
Change in control
Almost all M&A transactions involving financial services firms in the UK will require a change in control to be completed. We can help you through the authorisations and variation of permission process.
Systems and reporting
Compliance functions are using an increasing number of complex systems to deal with multiple reporting requirements. We can help identify the most effective systems that are performing to regulatory standards while being cost effective.