Case Study: Addressing Gaps Lists for a Successful Licensing Process 

Introduction 

The client is a company, in the process of obtaining a licence from a regulator (“Client”). Our team’s engagement with the Client focused on reviewing and refining their existing documentation to address identified gaps, ensuring compliance with regulatory requirements, and ensuring that the licensing application proceeds in an expedited manner. 

Challenge 

The Client faced a detailed gaps list issued by the regulator, requiring a review of multiple policies and operational documents to address specific regulatory requirements. The engagement demanded in-depth research, strategic recommendations, and coordination to close compliance gaps efficiently. 

Our Approach 

To tackle these challenges, we deployed a structured, collaborative approach that included: 

1. Engagement with Representatives from the Regulator: We attended meetings with representatives from the regulator to discuss the licensing application and clarify key regulatory expectations. Using insights from the meeting, we built a strategy for addressing the gaps list and refining the Client’s documentation. 

1. In-Depth Review and Refinement of Policies: We conducted a detailed review of key policies such as the Cybersecurity Policy, Virtual Asset Management Policy, and Key Generation and Wallet Management Policy to identify and address issues raised in the gaps list. We also evaluated the Client’s Investment Policy, amending the named policies to ensure alignment with the regulator’s expectations and industry standards. 

1. Research and Industry Best Practices: As part of the review process, our team conducted research on key management policies, separately managed accounts as investment portfolios, and industry standards in the MENA region for areas like insurance and DeFi accessibility. We investigated best practices for key and wallet management and incorporated our insights into the Client’s policies. 

1. Revising Documentation: We revised policies such as the Virtual Asset Wallet and Key Management Policy, incorporating feedback from the Client and input from relevant service providers. We then amended the gaps list responses to ensure clarity and regulatory alignment, proofread, and finalised responses for submission to the regulator. 

1. Stakeholder Coordination: Throughout this process, we liaised with and coordinated between multiple stakeholders, including the Client, various service providers, and other partners, to facilitate discussions and fulfil the Client’s requirements for key and wallet management, recruitment needs, and other aspects of their application. 

Outcome 

Through a comprehensive review and collaborative process, we addressed and bridged the gaps identified by the regulator, enhancing the Client’s policies and operational framework. The refined documentation and robust responses ensured that the Client was in a position to meet their licensing requirements effectively, on track for the speedy acquisition of their licence. 

Unlike our last project involving policy drafting from scratch, this engagement emphasised strategic review and gap closure. By leveraging existing documentation, conducting targeted research, and addressing problem areas, we demonstrated our ability to optimise compliance efforts efficiently while adhering to a high regulatory and operational standard. 

***

TLP Advisors is a dynamic and forward-thinking consulting, strategy and law firm specialising in providing cutting-edge solutions to our diverse clientele. With our roots deeply embedded in financial services, gaming, web3, and emerging tech, we offer unparalleled knowledge and support tailored to these rapidly evolving sectors’ unique challenges and opportunities.

TLP Advisors has consistently been the firm of choice for L1 chains, DeFi protocols, gaming companies, fintech and payment companies, foundations, funds, and investors. We have built a reputation for excellence through frequent collaborations with regulators, funds, and technology incubators. Our deep understanding of the intricate regulatory landscapes and industry dynamics allows us to provide strategic guidance and innovative solutions that empower our clients to navigate complex challenges and seize emerging opportunities.

www.techlawpolicy.com 

***