- As an emerging and rapidly evolving technology and related range of financial services and products, the implications for restructuring remain largely unchartered territory. Whereas on the face of it, and from practical experience, a simple exit can be straightforward, solutions for assets held by uncontactable or uncooperative clients are likely to be more problematic.
- Similarly, the regulatory and political landscape is changing rapidly and limitations on which services can be provided to each client group may cause short term stress (c.f. Hong Kong’s recent proposal restricting crypto-trading to professional investors).
- Equally, any risk taken onto the balance sheet connected to crypto assets (be that a direct connection or via, for example, investment in crypto-related shares) could prove riskier and more difficult to restructure than it appears at first sight, particularly in a situation of market stress or when liquidity is critical. A major fraud, cyber attack or hack could erode confidence in the whole market.
Exit from Crypto business
- Our client, a bank, was a pioneer in investing and trading in digital assets, digital assets custody and integration of cryptocurrency transactions for both institutional and private clients.
- As part of a wider market exit, they needed to exit their crypto business.
- The bank’s attempts to sell the business failed to find a buyer, despite initial interest.
- We then wound down the book by a combination of conversion of digital assets into fiat currency and the transfer of assets to wallets with alternative custodians, as instructed by the customers.
Details of the entity providing services, legal and regulatory information in respect of the Teneo entity are also included in our engagement letters.
Specific information relating to our regulated entities which provide services to clients is detailed below:
|Registered Name||Legal Form||Registration Location and Reference||Registered Office||Data Protection||Regulator(s)||Professional Indemnity Insurance|
|Teneo Financial Advisory Limited||Limited Company||England & Wales, 13192958||5th Floor, 6 More London Place, London, SE1 2DA||UK - ZA920639||The Institute of Chartered Accountants in England and Wales (“ICAEW”) C008873136. All insolvency practitioners are licenced by the ICAEW. ICAEW Designated Professional Body licence for a range of investment business activities.||Details of the professional indemnity insurer can be provided on request.|
|Teneo Securities LLC||Limited Liability Company||USA - Delaware||280 Park Avenue, 4th Floor, New York, NY 10017||N/A||Financial Industry Regulatory Authority (FINRA) #151256. |
Securities and Exchange Commission (SEC).
|Details of the professional indemnity insurer can be provided on request.|
Teneo Securities LLC’s Business Continuity Planning
Teneo Securities LLC has developed a Business Continuity Plan (“BCP”) on how we will respond to events that significantly disrupt our business. Since the timing and impact of disasters and disruptions is unpredictable, we will have to be flexible in responding to actual events as they occur. With that in mind, we are providing you with this information on our BCP.
The Firm has developed and installed a BCP in the case of any business disruption that causes the Firm to have limited or no communications with its employees or customers. Our plan anticipates two types of business disruptions, internal disruptions which affect only our Firm's ability to do business (such as a fire in our building) and external disruptions that prevent the operation of securities markets or other firms (such as natural disasters or acts of war).
The Firm intends to stay in business during both internal and external disruptions due to the fact that the Firm employees can conduct Firm related business from alternate off-site physical locations and the Firm maintains an alternate location for the maintenance of its books and records. We anticipate that the Firm will recover from internal business disruptions within 24-48 hours. An outage due to an external business disruption may be longer and is beyond the control of the Firm. However, the Firm will endeavor to resume business as soon as it is possible for the Firm to establish business operations from alternate off-site physical locations.
The Firm’s BCP specifically addresses the following areas related to Firm operations:
- Data back-up and recovery (hard copy and electronic);
- All mission critical systems;
- Procedures to test and determine the Firm's ability to do business (i.e., financial and operational assessments);
- Alternate communications between customers and the Firm;
- Alternate communications between the Firm and its employees;
- Alternate physical location of employees;
- Critical business constituent, bank, and counter-party impact;
- Regulatory reporting; and
- Communications with regulators.
If you have questions about our business continuity planning, you can contact us (212) 886-1600.