ACA Compliance Group Fall 2008 Compliance Conference

CONFERENCE AGENDA DESCRIPTIONS

Workshop Session: Understanding CCO and Supervisory Responsibilities

  • Introduction to the relevant supervisory regulations and legal landscape
  • CCO and Supervisory Responsibility
  • Effective oversight of staff and managing and budgeting for a compliance department
  • Monitoring the industry for best practices
  • Keeping up with the SEC rules and enforcement actions
  • Supervising foreign operations
  • CCO Liability
  • E&O insurance and risk management
  • Development, implementation, and testing of policies and procedures
  • Employee compliance training
  • Developing a "Culture of Compliance"

Peer Group Roundtables

  • Free-form discussions
  • Intimate groups of like-minded advisers
  • Discussion topics set by advisers
  • ACA facilitators participating in each roundtable

Compliance Benchmarking: Results of the 2008 Investment Management Compliance Testing Survey

  • Summary of results of compliance testing survey conducted by ACA Compliance Group, IM Insight, Investment Adviser Association, and Old Mutual
  • Best practices in the areas covered by survey
  • Benchmarking compliance practices among peers
  • Identification of notable compliance trends

Anti-Money Laundering Best Practices

  • OFAC and its applicability to an advisory business
  • Money laundering risk of investing abroad
  • Identification of high risk clients and suspicious activity
  • Understanding the Bank Secrecy Act and its enforcers
  • Filing a Suspicious Activity Report

New Form ADV Part 2

  • Summary of the new Form ADV Part 2
  • Brochure supplement requirement
  • Material changes to disclosure requirements
  • Disclosure of conflicts of interest in “plain English”
  • Requirement by hedge fund managers to deliver Part 2 to investors
  • Satisfying the brochure delivery requirement

Marketing by Advisers

  • Key SEC advertising no-action letters
  • Advertising prohibitions
  • Full and accurate disclosures
  • Use of solicitors
  • Advertising performance returns
  • Responding to RFPs
  • Marketing books and records

Valuation

  • Common fair valuation methodologies
  • Oversight of third-party pricing vendors
  • Price challenges
  • “Accommodation quotes”
  • FAS 157
  • Illiquid Securities

Trading & Trade Errors

  • Trade aggregation and allocation
  • Cross trades and principal transactions
  • Prohibited trades under ERISA
  • Defining a “trade error”
  • Documentation of trade errors
  • Disclosure of trading and trade error policies

Identifying Prohibited Securities Transactions for Mutual Funds

  • Overview of key prohibited transactions rules under the Investment Company Act
  • Developing procedures in the adviser’s business for mutual fund regulatory compliance
  • Common delegated responsibilities to advisers in a 38a-1 program
  • Identification and monitoring of common prohibited transactions

State Issues for SEC Registered Investment Advisers

  • States authority to investigate SEC-registered advisers
  • State filing requirements
  • Registration of individuals  



Code of Ethics and Insider Trading

  • Personal trading by employees
  • Pre-clearance and reporting requirements
  • Defining “material” and “non-public” information
  • Establishing controls over material non-public information
  • Gifts and entertainment policies
  • Outside business activities

Best Execution

  • Meaning of best execution
  • Directed brokerage practices
  • Use of soft dollars
  • Documentation of best execution analysis
  • Equity trades vs. fixed income trades
  • ECNs
  • Comparison with VWAP

Regulation S-P

  • Amendments to Reg. S-P
  • Information security programs
  • Form SP-30
  • Identification of security breaches
  • Proper disposal of non-public client information
  • Notification requirements for breaches of security

How to Manage an SEC Inspection

  • Summary of types of SEC examinations
  • SEC request lists
  • FOIA requests
  • Preparing books and records for inspection
  • Being interviewed by SEC staff members
  • Disagreements with SEC staff conclusions
  • Exit interviews
  • Responding to deficiency letters

CCO's Guide to GIPS Compliance

  • Documented policies and procedures required by GIPS
  • Responsibilities that must be upheld by GIPS compliant firms
  • GIPS Advertising Guidelines
  • Areas where GIPS differ from SEC rules and regulations
  • Tips on how to better ensure your firm is compliant
  • Deficiencies commonly found by regulators and verifiers