MRB Compliance Consulting

The energy industry represents a critical component of national security for every country. Given the inherent complexities in energy trading, such as fluctuating supply and demand along with logistical considerations all affecting price formation, governments have implemented stringent regulatory measures for all market participants. Now that the U.S. is a major energy exporter, compliance with a myriad of regulations ensuring a fair, transparent and stable marketplace is critical. Complicating matters further is President Biden’s recent Executive Order suspending Liquified Natural Gas (LNG) certifications.

Backed by a wealth of knowledge and practical experience in energy trading compliance, MRB Compliance Consulting helps companies seamlessly manage regulatory requirements and operate with reduced risk in a “fit for purpose” compliance programs.

“We design tailor-made compliance programs that consistently meet the expectations of clients and external stakeholders, including regulatory agencies, auditors and criminal authorities,” says Michael R. Berry, founder and managing member.

Practitioners Over Advisors

Companies across industries turn to consultants for establishing robust compliance and control frameworks. However, many of these ‘advisory-focused’ consultants have limited exposure to industry-specific challenges and front-line experience with those challenges. This is where MRB Compliance shines with its expertise in compliance issues within the energy trading industry.

A reputed compliance practitioner with hands-on experience in highly regulated industries, Berry has an in-depth understanding of real-world compliance challenges faced by organizations.

During his tenure as the Head of Compliance at British Petroleum (BP), his extensive knowledge of compliance-related challenges helped the company overcome serious damage to its reputation. A government investigation was initiated against BP for manipulating propane prices, leading to criminal charges and a Deferred Prosecution Agreement (DPA). It marked the first enforcement action of its kind in the energy trading industry. Berry played a crucial role in establishing a sound compliance program and instilling a culture of compliance, while under the watch of a government imposed corporate compliance monitor.

Over three years, the monitor, appointed by the Department of Justice, oversaw the progress while Berry ensured the company’s compliance culture underwent significant changes. The success of this effort was crucial for BP to fulfill its DPA. At the end of three years, the monitor deemed its actions adequate, signaling success in transforming the company’s compliance culture.

A Step Ahead Of Market Developments

Today, the MRB team leverages Berry’s wealth of experience and expertise in energy trading compliance to anticipate any significant regulatory changes in the industry, helping clients design compliance frameworks on par with evolving mandates. The team helps clients gain insights beyond theoretical knowledge and implement sustainable governance, risk, and compliance frameworks.

For instance, recent political developments have wielded a profound influence on energy trading compliance.

Developments like the Supreme Court’s review of Chevron Deference—a law that restricts individuals undergoing regulatory processes from seeking adjudication in the courts—is expected to create ripples in the compliance landscape. If eliminated, it will drastically elevate the role of compliance within organizations.

The intersection of becoming a world exporter of energy, strengthening of economic sanctions and a probable change, if not elimination of the Chevron Deference changes the compliance landscape in the U.S. energy sector completely.

The team also shoulders the responsibility of helping companies stay compliant in their energy transition efforts. As practitioners in this landscape, they yield the combined power of expertise, adaptability, and a forward-thinking approach to align with the ever-changing dynamics of the industry. This helps build the best possible compliance framework to help clients transition toward renewable energy resources as part of their broader sustainability agenda.

Redefining Efficiency In Consulting Services
Cognizant of how compliance is far from a one-size-fits-all approach, the MRB Consulting team conducts a detailed risk assessment to gauge the distinct profile of every client. This enables the team to tailor compliance services that align with the client’s risk profile and allocate resources to remediate those areas to build an efficient compliance framework.

“MRB Compliance Consulting does not offer a mass-market solution. We embed ourselves within organizations, facilitating ongoing feedback and monitoring to ensure consistency in addressing risks and applying our services to specific organizational challenges,” says Berry.

This meticulous approach has helped Berry and the team script numerous success stories. A notable one involves conducting a market abuse risk assessment for Shell. Based on the assessment’s results, a robust compliance program was established.

Currently, MRB is overseeing a compliance program for PetroChina International America to implement trading compliance measures across North and South America, contributing to the global integration of the company’s compliance efforts across all regions. MRB is also advising on the global coordination at PetroChina International Ltd.

Future-Proofing Legal Adherence

Having gained a widespread reputation over the past 13 years, Berry and one of his long-term colleagues are spearheading two initiatives to address the growing challenges in the energy trading compliance space. The compliance function's execution must change with the changing technological landscape to ensure robust corporate governance. Berry sees the use of BlockChain Smart Contracts and Artificial Intelligence being key drivers in the execution of the compliance function.

The primary initiative builds on the foundation Berry established at MRB, leading to the creation of Energy Compliance and Risk Associates (ECRA). The new company is dedicated to assisting firms in establishing, maintaining, and continually assessing energy trading compliance programs. Keeping in mind the dual nature of compliance—meeting external and internal regulations and having a program that qualitatively proves its effectiveness—the company aims to help energy organizations efficiently meet these requirements while deploying resources effectively mitigating potential regulatory risks.

The second initiative, still in its nascent stage, revolves around filling a void in the energy trading compliance space, where Compliance Officers lack a dedicated voice to advocate for compliance issues. This advocacy role is primarily undertaken by legal firms focusing on regulatory matters.

Berry aims to shift this dynamic by leveraging his hands-on experience working with some of the world’s largest energy companies in the sector. The concept involves establishing an advocacy group specifically for Compliance Officers who can engage with regulators to facilitate a better understanding of regulations and address interpretive and operational challenges.

Through an amalgamation of strategic and practical understanding of risks, MRB Consulting is the guiding light in helping energy companies develop strong compliance programs. They do not just satisfy regulatory demands but unlock the highest levels of operational efficiency and ethical standards in the energy trading industry.