Banking organizations, investment managers, private equity firms and industrial companies seek to advance various important corporate purposes when they form or acquire broker-dealers. However, because the regulatory scheme for broker-dealers is very detailed and prescriptive, bringing a broker-dealer into the corporate family requires forethought and careful planning in order to avoid unanticipated compliance, financial and reputational risks for the acquirer. This article, which is co-authored by Davis Polk and Oliver Wyman, provides an introduction to common regulation-driven integration considerations, and suggests approaches to addressing them.
