Governance & Regulation | FTI Consulting
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Governance & Regulation

Today, financial institutions must comply with regulatory requirements that are ever-evolving. To ensure risks and rewards are appropriately balanced, controls and risk management programs are effective, and there is appropriate board or senior management oversight, financial services organizations around the world rely on FTI Consulting. Our senior multidisciplinary teams provide client organizations the necessary deep industry knowledge and expert advisory to understand and comply with the latest regulatory laws that affect them.

Areas of Expertise

Anti-Money Laundering & Bank Secrecy Act Consulting

Financial institutions face external scrutiny and pressure from regulators to serve as the first line of defense in the global war on money laundering and terrorist financing. As a leading independent consulting firm free of conflicts, FTI Consulting is often the preferred provider of critical services to financial institutions globally, helping them address these challenges and avoid potentially severe consequences, including significant monetary penalties, regulator-mandated consent orders and shareholder litigation.

We help clients design robust compliance programs for anti-money laundering (AML), Bank Secrecy Act, the U.S. PATRIOT Act, and Office of Foreign Assets Control regulations. Our senior experts, who over their decades-long careers have gained a deep knowledge of AML, sanctions and anti-corruption matters, understand the laws and regulations, and have developed effective methodologies to launch and remediate compliance and governance programs.

Clients rely on us for our:

  • Governance, risk and compliance services, including remediation and compliance project assistance, independent testing and pre-regulatory examinations, and risk assessment and compliance program management
  • Investigative and business intelligence services, including AML risk assessment, AML program development and management, fraud and financial crime investigative and advisory services, due diligence and business intelligence services, and forensic accounting and data analytics and management
  • Technology services, including transaction lookback analysis services and transaction monitoring implementation assistance

Bank Board Training

Regulations require that directors of financial institutions be educated and well versed in the extensive regulations governing their institution, and that they take a proactive, engaged approach to performing their board duties. To help directors meet these requirements, clients look to our team of experienced former bank regulators and senior bank managers to share their current knowledge of today’s regulatory environment. We offer practical and effective solutions, advising boards of directors on current and potential issues the institution is facing — or may face — before those issues escalate into crisis situations.

Clients rely on our advisory and assistance with:

  • Regulatory frameworks. Board members rely on our advisory to help them better understand the correspondence, reports and ratings issued by specific regulators, and improve the overall management of requirements and communications with regulators.
  • AML/BSA/OFAC Program. We advise boards on the four pillars of the AML/BSA/OFAC Program, preparing the board on how to evaluate their bank’s program, and providing them with the tools to do so.
  • Compliance management systems. Boards engage our senior experts to help them understand each regulator’s expectations and the board’s responsibilities for ensuring that the financial institution has an effective compliance management system in place.
  • Safety and soundness. We’re frequently called on to educate directors regarding the underlying factors influencing the CAMEL rating and how it is determined, looking closely at measures relating to asset quality, capital, earnings, liquidity, management processes, and sensitivity to market risk.

CFPB Consulting

The Dodd-Frank Act created the Consumer Financial Protection Bureau (CFPB), providing regulators with new powers and significantly increasing regulatory examination of consumer finance activity, including mortgages, auto loans, student lending, debt collection, consumer reporting and other consumer lending-related activities. Our team helps clients prepare for CFPB exams, respond to inquiries, and defend alleged violations by proactively identifying and addressing potential concerns early. Our CFPB professionals are experienced in key consumer lending and servicing areas, including account and transaction reviews, restitution calculations, settlement negotiations, and remediation.

Engage us for:

  • Account reviews: Identification of specific criteria and review and analysis of electronic, imaged or paper account opening records
  • Transaction reviews: Capability for electronic review of billions of transactions to identify those that may trigger reporting and analysis obligations and compliance issues
  • Restitution calculations and modeling, and settlement negotiations: Scenario modeling for development of settlement proposals and assistance in discussions and negotiations with regulators or plaintiffs
  • Remediation: Full range of services related to CFPB remediation process, including whole loan acquisition, securitization, and post securitization requirements
  • Technology capabilities: Including Ringtail® E-discovery Software, Loan Evaluation and Analytics Data Repository (LEADr), Automated Response Tool (ART), and Account/Loan Information Database (aLID)

Credit Risk

Regulators continue to expect more from the credit risk management function. “Strong,” not “Satisfactory,” is the new expected performance measure for credit risk and counterparty credit risk management policies, processes, personnel and control systems. As a leading independent consulting firm free of conflicts, FTI Consulting is often the preferred provider of critical credit risk services to financial institutions globally. We help financial services clients of all sizes and specialties navigate a constantly changing environment of financial service regulations, enforcement actions, litigation, and economic and competitive challenges.

Our services include:

  • Credit risk strategy and execution
  • Credit-related enforcement action and management reviews
  • Counterparty credit risk and third-party/vendor relationship management
  • Pre-examination and readiness reviews
  • Credit risk rating design, implementation and testing
  • Independent loan reviews
  • Credit/loan loss reserve (allowance for loan and lease losses)
  • Loan portfolio management diagnostics
  • Credit risk modeling, scoring evaluation and quality control assessments
  • Leveraged lending reviews
  • Shared national credit review services
  • Credit training services

Fair Lending & CRA Services

Clients engage us to help them proactively design robust non-discriminatory compliance lending programs and respond to regulatory inquiries, exams, enforcement actions and lawsuit, as they undergo intense scrutiny by the Consumer Financial Protection Bureau (CFPB), bank prudential regulators, state agencies, community groups and the U.S. Department of Justice. Our senior teams have the governance, investigative and regulatory expertise to implement lending programs and help financial institutions, secondary mortgage lenders, and other non-bank financial lenders maintain the highest standards and consistency and fairness in lending.

Our comprehensive services cover the following categories:

  • Governance, risk and compliance services: Remediation and compliance project assistance; independent testing and pre-examination reviews; development and assessment of compliance management systems; and assistance with Community Reinvestment Act compliance, data capture, reporting, fair lending components, and identification of profitable lending opportunities
  • Assessment and analysis: Full suite of services that inform the board and senior management and that ensure full compliance, including enterprise and general fair lending reviews, mortgage lending process analysis, large data set analytics and statistical modeling, and proxy or third-party data analytics
  • Technology: Large transaction data set lookback services and assistance with ensuring availability of quality data
  • Training: Our staff of former regulators and trained examiners provide a full range of customized training to boards and senior management

Financial Risk

Financial institutions seek to improve the strategic management of their balance sheet in line with business objectives for sustained growth, profitability and solvency. As a leading independent consulting firm free of conflicts, FTI Consulting is often the preferred provider of critical services to these financial institutions around the world. Our approach considers an entity’s need to address capital, credit risk, liquidity risk, interest rate risk, market risk and model risk, as well as the increasing demands of regulators and investors for greater transparency and accountability for risk management. We help our clients balance and meet these challenges by focusing on the core drivers for mitigating and managing risk and uncovering opportunity, and deliver services that overcome weaknesses, provide actionable recommendations, and inform decision makers.

Clients rely on our services that help them address financial risk. These include:

  • Governance services
  • Asset/liability management
  • Capital planning and stress testing
  • Credit risk management
  • Enhanced productivity
  • Interest rate risk
  • Liquidity and funds management
  • Market risk
  • Operational risk


Clients engage us because of our proven track record as a leading independent consulting firm that helps financial institutions meet their enterprise financial, risk and operational governance requirements. When you partner with us, we ensure that formal governance practices are implemented and executed properly, that your institution is able to improve oversight and understanding of its activities — and that it is not subject to adverse impacts of negative regulatory exams and enforcement actions.

Engage us for our governance services that address the following key requirements.

  • Board, management and organizational assessments
  • Pre- and post-examination assessments and advisory services
  • Compensation analysis and advisory services
  • Assessment of “Enhanced Prudential Standards” established by the Federal Reserve and “Heightened Expectations” by the OCC
  • Enterprise risk management services
  • Regulatory compliance advisory services

Executive Compensation Programs

In public and private companies across industries, executive compensation continues to be highly scrutinized and increasingly complex. Today’s executive compensation programs must address a company’s specific needs while balancing regulatory requirements, shareholder concerns and corporate governance standards. For our client organizations, we provide objective and strong advice to design and implement comprehensive executive compensation programs. These programs attract and retain top talent, effectively reward and motivate management and employees for the right kind of performance, and closely align the interests of employees, shareholders and investors.

Clients trust us to deliver services such as:

  • Competitive compensation review. Compensation committees and management teams partner with us to perform a comprehensive review of competitive data and recommended changes, including base salary, annual cash incentives, long-term incentives, benefits and perquisites, pay mix, employment and severance agreements, pay philosophy and objectives, equity dilution, grant types, and board of directors compensation.
  • Incentive plan design. Let us prepare in-depth analyses and recommendations for cash incentives and long-term incentives that consider performance metric and goal setting to drive real performance, balance of objective financial goals and subjective corporate and individual goals, plan leverage, accounting and tax implications, and plan vehicle selection.
  • Proxy-related services. Organizations engage us to provide guidance and best practices for information included in the proxy statement and other materials relating to say-on-pay proposals. These include drafts of the compensation discussion and analysis, with content and enhanced graphics; calculation of potential severance payments; CEO pay ratio calculations; equity incentive plan design; and audit of compensation tables
  • Corporate governance services. We support the board of directors for key governance areas, including compensation risk assessments, guidance on institutional investor policies and proxy advisor policies, board and executive evaluations, succession planning, stock ownership requirements, and shareholder engagement and outreach.
  • Litigation support. Drawing upon our extensive compensation knowledge base and technical expertise, we provide professional litigation support services and expert testimony for compensation-related litigation. Clients rely on our seasoned compensation, tax and accounting professionals to help them resolve the most complex legal issues and challenges of compensation-related matters. We are regularly called on to provide expert witness testimony, expert witness reports, and arbitration and mediation services.
  • Corporate transaction services. Clients have engaged us as compensation advisors on IPO and 144A offerings, which include the structuring of pre- and post-IPO cash and equity compensation that balances executive liquidity and shareholder dilution concerns. When serving as advisors on transactions, our services have included the computation of 280G excise tax gross-up payments, negotiation of employment, non-compete and retention agreements, and analysis and computation for all compensation-related costs of the transactions. In addition, companies engage us to perform the post-acquisition integration of employees into the new corporate structure.
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