Compliance Programs and CCOs

Cybersecurity Again Top Adviser Compliance Topic

A recently released nationwide survey provides numbers behind what should not be a surprise conclusion for most asset management professionals: Cybersecurity remains far and away the hottest topic among investment advisers, dwarfing other concerns like advertising, custody, privacy and fiduciary duty.

Check Out Audit Team Members before Retaining Firm

It is essential that accounting firms hired to perform audits - and their individual audit team members - have credibility, and that asset managers that hire such firms know they can rely on their work. Failure on the part of advisory firms and other financial institutions to ensure that those performing the audit are up to snuff may result in serious consequences.

Self-Report or Not: Consider Whats at Stake

The SECs recent share class initiative - in which the agency promises not to charge civil money penalties to advisers that voluntarily report that they placed clients in certain share classes when less expensive classes were available - has cast a spotlight on the question of whether self-reporting is a good idea.

Risk Matrix: Consider the Benefits of This Living Compliance Tool

Experienced chief compliance officers have a number of tools and practices at their disposal to ensure success at their jobs. One tool used by the savviest CCOs is a risk matrix: a continually updated, or living, chart that plots a changing list of compliance challenges against the risks they pose and actions taken to reduce those risks. If a CCO does not yet have a risk matrix in place, he or she would be wise to consider developing one.

Multiple and Repeated Compliance Problems Likely to Draw SEC Action

Compliance is more than simply taking steps to satisfy regulators. If followed in spirit, with an eye toward ethics, compliance should be part of a culture where advisory firms do the right thing simply because it is right. In doing so, they will probably find that they are more likely to satisfy SEC requirements and thereby head off potential enforcement actions.

Hedge Fund Compliance: Insider Trading, Allocation, Alternative Data, and More

Advisers managing hedge funds, to a large extent, face many of the same issues that advisers managing other funds do. Requirements regarding fees and expenses, custody, books and records and more must be met. There are other compliance issues, however, where the SEC can be expected to pay particular attention to hedge funds - and managing advisers would be wise to make sure they are on top of them.

2017 in Review: A New SEC, Cybersecurity Threats and the Fiduciary Rule

The past year saw a great deal of change and development in the asset management community, but three loom larger than others: A new SEC with Jay Clayton at the helm, bringing different priorities than his predecessor; exacerbating cybersecurity concerns, with the SEC itself one of the victims; and the Department of Labors Fiduciary Rule and its exemptions, delays in their taking effect, and the increasing likelihood of SEC involvement in the process.

2018: What Advisers Should Expect in the Year Ahead

Prognostication is always a bit of a guessing game. What may look like priorities in January may be replaced by other issues in the latter part of the year or may be driven by external and internal events, politics and the marketplace. Whatever may occur, 2018 is already marked as a year for change in the asset management industry.

OCIE Turns the Spotlight on Municipal Adviser Compliance Failures

The SECs Office of Compliance Inspections and Examinations on November 7 issued a Risk Alert based on its observations from examinations of municipal advisers. The observations make clear that OCIE finds compliance lacking in at least three key areas: registration, recordkeeping and supervision.

Chief Compliance Officers: Know When and How to Resign

Few chief compliance officers want to resign for any reason other than accepting a better offer at another firm. The reality, however, is that CCOs may find themselves in positions where, for compliance reasons and to protect their own career credibility, they have little choice but to consider resignation. The key is recognizing when those times arise and knowing how to extricate themselves from their errant firms safely.

Audio Interviews

How to Read an SEC Enforcement Action

Stern Tannenbaum law firm partner Aegis Frumento on how to get the most from reading an SEC administrative order or court complaint.

Most Important Supreme Court Decisions for Advisers and Funds

Find out the high court decisions from recent years that are likely to affect how advisers and investment companies work from Debevoise partner Robert Kaplan. 

Top 10 Cybersecurity Steps to Take Now

Sutherland law firm partner Brian Rubin shares the most urgent cybersecurity steps for investment advisers.

Top Marketing Problems … and Solutions

Get solutions for the top marketing challenges that advisers face from ACA Compliance Group managing director Kimberly Daly

Watch Out for 5 Cybersecurity Myths

ACA Aponix Director Pascal Busnel on the most common cybersecurity myths that may cause firms to spend resources where they may not be needed.

The Hidden Costs of Non-Compliance

Proskauer law firm partner and former SEC Division of Investment Management deputy director Robert Plaze on why the costs of non-compliance go way beyond an SEC penalty.

CCO Liability: How to Protect Yourself

Find out from Blue Edge Capital CCO Margaret Fretz what chief compliance officers may be liable for and best practices to make sure you are protected.

Ethics or Compliance: Making the Choice

Find out the difference an ethics, rather than a compliance, perspective makes at an advisory firm from former Ethics and Compliance Officer Association COO Timothy Mazur.