The sheer number of investment advisers is increasing at a dramatic pace and total assets under management have hit an all time high. But of the greatest importance to you are the regulatory changes on the horizon that are sure to impact your firm’s compliance program.
Whether it’s books and records reform, soft dollars disclosure, new Form ADV Part 2, anti-money laundering, compliance program testing or the next round of the annual review, change is coming.
It’s more important than ever that you get the solutions you need throughout the year. That’s why we have put all 15 sessions from the SOLD OUT 10th Annual IA Compliance Best Practices Summit on DVD.
Share this valuable information with colleagues. Have available important guidance when you need it. Catch some sessions you may have missed.
DVD #1
Keynote Address
During the past decade, SEC inspections have changed dramatically as the agency has implemented a risk-based program. As the director of the SEC’s inspection office, Lori Richards has responsibility for overseeing the SEC’s efforts to detect fraud and other violations of the securities laws, to foster compliance with the securities laws, and to help ensure that the SEC is aware of areas of potential risk in the securities industry. Ms. Richards will share her perspectives on the current priorities of the SEC’s inspection program for investment advisers and the leading issues for compliance officers.
Lori Richards, Director, Office of Compliance Inspections and Examinations, SEC
DVD #2
Form ADV, Part 2: Out of Limbo, Into the Spotlight?
A significant shift in the disclosure regime for investment advisers will result when the SEC considers an overhaul of Form ADV Part 2. The SEC staff is recommending a re-proposal of the planned amendments, moving it out of limbo where it has been languishing for more than seven years. “This development is truly a major event in the regulation of the advisory industry as the importance of Form ADV cannot be understated,” said IM director Andrew Donohue. You can expect more meaningful disclosure of your business practices, conflicts of interest, and background of advisory personnel.
Topics may include:
- How the move from a check-the-box format to a plain English narrative document will impact you;
- The disclosure proposed to be included in brochure supplements; and
- The implications for public access to Form ADV Part 2.
Bonus: Hear disclosure best practices from an industry veteran on how to avoid being deficient when disclosing conflicts of interests, compensation arrangements, solicitations, fee structures and soft dollar arrangements.
J. Christopher Jackson, Director and Head of U.S. Retail Legal, Deutsche Asset Management; David Blass, Assistant Director, Division of Investment Management, SEC; Robert Bagnall, Partner, WilmerHale
DVD #3
The Annual Review and Compliance Program Testing: Tips to Bolster Your Process
SEC examiners look at a firm’s annual review during every examination. The good news: almost two-thirds of firms were viewed favorably when it came to the annual review. The bad news: 20% of firms did not conduct any annual review activities. Nearly half of IAs examined received deficiency letter comments regarding how they could improve their annual review. OCIE panelist Gene Gohlke has said “there’s still some ways to go” in this area. Our panelists will detail for you:
- Whether to define a “material compliance event” (only 14% of advisory firms have arrived at a definition);
- Whether to have the annual review conducted by the CCO and compliance staff;
- Best practices for involving your managers in the risk assessment process;
- The benefits of conducting the annual review on an ongoing basis; How exception reports can signal the need to take action; and
- How to implement “forensic testing” in your firm’s sensitive areas like valuation and insider trading.
Helane Morrison, Chief Compliance Officer and General Counsel, Hall Capital Partners, LLC; Gene Gohlke, Associate Director, Office of Compliance Inspections and Examinations, SEC; Mari-Anne Pisarri, Partner, Pickard & Djinis
DVD #4
Advertising and Marketing: The Devil’s in the Details
Complexity and confusion surround interpretation of the advertising rules under the Advisers Act. In a recent risk-targeted exam the SEC found that one-third of IAs lacked performance advertising policies and others did not appear to maintain procedures that were effective. With performance advertising making a perennial appearance on the SEC’s annual deficiency list, you need helpful information. Learn about the trends that have emerged for policies and procedures that address such issues as:
- Use by third-party consultants of compliant presentations;
- Disclosures that must be included to avoid misleading marketing material;
- Use of stock stories in firm materials; Claims of GIPS compliance; and
- Appropriate comparison of composites to benchmarks.
Elizabeth Osterman, Assistant Chief Counsel, Division of Investment Management, SEC; David Canter, Vice President and Associate General Counsel, Charles Schwab & Co., Inc.; Monica Parry, Of Counsel, Morgan Lewis
DVD #5
CCO Best Practices Breakout: AUM Under $1 Million
When it comes to the myriad compliance challenges you face on a daily basis, we know that your firm’s size affects the issues you are wrestling with. To that end, we have created three breakout sessions specific to your firm’s size with panels of CCOs from like-sized firms. These CCOs will discuss real-world “best practices” they have employed in their firms, touching on such areas as:
- Ensuring a compliance tone at the top;
- The annual review process;
- Transactional and forensic testing;
- E-mail monitoring and retention; Examination preparation; Budgeting; Conducting firm-wide training; and
- Much more.
Andrew Knowland, Chief Compliance Officer, Foster Dykema Cabot & Co., Inc.; Weston Howland, III, President and Chief Compliance Officer, Howland Capital Management, Inc.; Mike Provine, Managing Director, Chief Compliance Officer, Tradition Capital Management, LLC
DVD #6
CCO Best Practices Breakout: AUM $1 Billion to $10 Billion
When it comes to the myriad compliance challenges you face on a daily basis, we know that your firm’s size affects the issues you are wrestling with. To that end, we have created three breakout sessions specific to your firm’s size with panels of CCOs from like-sized firms. These CCOs will discuss real-world “best practices” they have employed in their firms, touching on such areas as:
- Ensuring a compliance tone at the top;
- The annual review process;
- Transactional and forensic testing;
- E-mail monitoring and retention; Examination preparation; Budgeting; Conducting firm-wide training; and
- Much more.
Michelle Kennedy, Assistant Vice President, Wealth Trust Advisors, Inc.; Lee Untermann, Chief Operating Officer, David J. Greene & Company; Gordon Goodykoontz, Chief Compliance Officer, Thompson, Siegel & Walmsley, LLC; Susan Rudzinski, Compliance Director, Convergent Capital Management, LLC
DVD #7
CCO Best Practices Breakout: AUM Over $10 Billion
When it comes to the myriad compliance challenges you face on a daily basis, we know that your firm’s size affects the issues you are wrestling with. To that end, we have created three breakout sessions specific to your firm’s size with panels of CCOs from like-sized firms. These CCOs will discuss real-world “best practices” they have employed in their firms, touching on such areas as:
- Ensuring a compliance tone at the top;
- The annual review process;
- Transactional and forensic testing;
- E-mail monitoring and retention; Examination preparation; Budgeting; Conducting firm-wide training; and
- Much more.
David Lui, Chief Compliance Officer, FAF Advisors/ First American Funds; Linda Wondrack, Chief Compliance Officer, Columbia Management Advisors, LLC; Todd Spillane, Chief Compliance Officer, Invesco US
DVD #8
Best Execution and Trading Issues: Monitoring and Disclosure Solutions
As a compliance professional, you should be focusing on your firm’s trading conflicts, keeping track of the use of brokerage commissions, and monitoring how trading practices are disclosed to your clients. Best execution inquiries should be made across all accounts and products. Our panelists will discuss the full range of factors involved in the process of evaluating whether your firm is appropriately seeking best execution. You will also hear from our panelists on suggestions for monitoring and best practices for best execution and trading issues.
Barbara Brooke Manning, Chief Compliance Officer, ClearBridge Advisors; Kevin Goodman, Associate Regional Director (Denver Regional Office), SEC; Elizabeth Knoblock, Partner, Mayer Brown
DVD #9
Books and Records: Reform Moves Front and Center
Confusion reigns for IAs over the distinctions between what records must be created, what records must be retained and what records must be provided to examiners. The rules governing investment adviser recordkeeping requirements have not been comprehensively updated since they were adopted in the 1960s. But change is on the way. The SEC’s Division of Investment Management is actively exploring a potential overhaul of the books and records rule, including electronic record retention. Our panel will detail what’s in store for you and whether adviser rules will be harmonized with the broker-dealer rules.
Jennifer Sawin, Senior Special Counsel, Division of Investment Management, SEC; Ken Berman, Partner, Debevoise & Plimpton, LLP; Lisa Sheeler, Vice President and Assistant General Counsel, MFS Investment Management
DVD #10
Code of Ethics: The Backbone of Your Compliance Program
As a registered IA you must have a code of ethics governing employees’ conduct and personal securities trading. But examiners are finding firms whose code of ethics were deficient or not implemented and whose employees’ trading was not reported or reviewed. This comes against the backdrop of the SEC’s focus on insider trading. Our panel will discuss these issues, as well as best practices for gifts and entertainment and contribution policies and procedures.
Bonus: Our panel will also discuss a variety of tests you can conduct on personal trading that are routinely performed by SEC examiners.
Greg McShea, Chief Compliance Officer and Deputy General Counsel, Legg Mason Capital Management; Dan Kahl, Branch Chief, Division of Investment Management, SEC; Mark Perlow, Partner, K&L Gates
DVD #11
Compliance Hot Topics: Forecasting What’s on the Horizon
This is a must-attend session for every proactive compliance professional. You will get the most up-to-date information and guidance on such key issues as:
- The potential fallout from the IA/BD study – what’s at stake for all investment advisers;
- Soft dollars – what are the likely changes that advisers should prepare for;
- And much more.
At this session you get up-to-the-minute analysis of forthcoming rules and their ultimate impact on you.
Robert Plaze, Associate Director, Division of Investment Management, SEC; Stephanie Monaco, Partner, Mayer Brown; David Tittsworth, Executive Director, Investment Adviser Association
DVD #12
Hedge Fund Advisers: The Spotlight Still Shines
If your firm manages hedge funds, you face a host of hot topics. Valuation challenges, concerns over side letters, side-by-side management, proposed new accredited investor standards, performance advertising, potential tax law changes, and the anti-fraud rules are all current focuses. Our panel will discuss the current landscape and cover the road ahead.
Paula Drake, General Counsel, Oeschle International Advisors, LLC; Robert Plaze, Associate Director, Division of Investment Management, SEC; David Vaughan, Partner, Dechert
DVD #13
ERISA Plan Advisers: An Industry Update
The Department of Labor is focusing on investment advisers to pension plans. From gift and entertainment enforcement initiatives to proposed new soft dollar disclosures in public filings to proposed new disclosures to plan sponsors regarding compensation and expenses to changes to bonding requirements and prohibited transaction rules under the Pension Protection Act, this session will focus on the latest developments affecting advisers with ERISA clients.
Jay Haines, Senior Vice President, Counsel, Putnam Investments; Lou Campagna, Chief, Division of Fiduciary Interpretations, Office of Regulations and Interpretations, Employee Benefit Security Administration, U.S. Department of Labor; Bill Schmidt, Partner, K&L Gates
DVD #14
Anti-Money Laundering: Beyond the Basics
The SEC has signaled that AML compliance for financial institutions has entered a more mature phase. AML compliance requires firms to look beyond “bright-line” legal requirements and instead focus on the “total mix” to determine what is and is not suspicious. Our expert panel will tackle such items as:
- What every adviser should be doing now, even before AML rules applying to advisers are adopted;
- Looking at your entire business enterprise for money laundering;
- Suspicious activity monitoring, detection and reporting;
- SAR documentation;
- Doing business with foreign financial institutions;
- Training; and
- AML best practices and red flags
William Germenis, Vice President, The Dreyfus Corporation; Gary Sutton, Senior Legal Adviser for Financial Crimes, U.S. Department of the Treasury; Margaret Paradis, Partner, Baker & McKenzie LLP
DVD #15
SEC Examinations: Trends, Tips and Real-World Experiences
The SEC staff has been making more onerous requests in advance of an examination and is also asking tougher questions on site. Examiners are supposed to understand your compliance controls, to test those compliance controls and identify any weaknesses or violations. With over 80% of the 1,300 adviser exams resulting in a deficiency letter, you need to know where examiners are focusing. Better yet, you need to know whether the New York Regional Office’s controversial “pilot” document request letter is likely to become a national standard. You will hear directly from OCIE’s chief counsel and a CCO who has recently undergone such an examination.Bonus: You will receive samples of the latest SEC document request letters from various regions.
Victor Frye, Counsel and Chief Compliance Officer, ProFund Advisors, LLC; John Walsh, Associate Director-Chief Counsel, Office of Compliance Inspections and Examinations, SEC; Rick Marshall, Partner, Ropes & Gray
