Investment Adviser Regulation

A person or firm meeting the definition of investment adviser under the Advisers Act must register with the Securities Exchange Commission, unless exempt or prohibited from registration. This one-day seminar will give an overview of the investment adviser regulation pursuant to the Investment Advisers Act of 1940.

Topics will include the regulation of investment advisers; related broker-dealer and investment company regulations; record keeping and reporting requirements, and recent court decision impacting the industry.

02-Aug-2013 -- 02-Aug-2013New YorkUSD$1575
NY Institute of Finance - Midtown9:00am - 4:30pm Instructional Method:
Group-Live
Instructor(s): [ NYIF Instructor; ] Fri Level: Basic

CPE CREDITS
7.0
Compliance officers, registered representatives
No advance preparation required.
Students will be able to:
  • An understanding of the background of the Investment ADvisers Act and the rules and regulations that govern investment advisers
  • An understanding of the requirements of becoming an investment adviser and what exemptions exist
  • Practical understanding recordkeeping and reporting requirements, SEC examination requests and annual reviews
  • Practical knowledge regarding compliance programs under Rule 206(4)-7
  • Interaction between Investment Adviser and Broker/Dealer/Investment Company Rules and Regulations
None
  • Mutual Fund Regulation and Governance
    • Registration of Investment Advisers
    • Definition of Investment Adviser
    • Registration
    • Exemptions
    • Form ADV
    • - Disclosures

    Recordkeeping and Reporting Requirements

    • Disclosures

    Compliance Programs Under Rule 206(4)-7

    • Rule 38a-1 under 1940 Act
    • Annual Review

    Code of Ethics

    • Standards of Conduct
    • Conflicts of interest and personal securities reporting and pre-approval requirements
    • - Monitoring employee trading
    • - Pre-approval

    Prevent the misuse of material, non-public information

    • Policies and Procedures
    • Implementing policies and procedures
    • - Restricted and watch lists
    • - Information barriers
    • - Monitor employee trading
    • - Training programs
    • - Internal enforcement

    Custody

    • Custody of client assets
    • Requirements arising out of custody
    • - Procedural requirements
    • - Recordkeeping requirements
    • - Form ADV implications

    Reporting requirements – Form ADV

    • Accuracy of information
    • Amending the Form ADV
    • Initial delivery of brochure to new clients
    • Annual delivery or offer to deliver brochure to existing clients

    Advertising and performance information

    • Definition of advertising
    • Requirements and restrictions
    • - Restrictions on use of performance data
    • - Use of performance achieved at other firms
    • - Other specific restrictions
    • Internal compliance procedures

    Document retention

    • Retention of books and records
    • - Retention of records
    • - Electronic recordkeeping

    Contracts

    • Required non-assignment clause
    • Prohibited waiver of compliance clause
    • Prohibited hedge clause
    • Prohibited performance fees
    • Termination
    • Partnership changes

    Portfolio Management

    • Best execution
    • Brokerage arrangements
    • Principal transactions
    • Agency cross transactions
    • Aggregation of client orders
    • Valuation of portfolio holdings
    • Suitability
    • Use of affiliated broker-dealers

    Trade Error Correction

    • Correcting errors
    • Procedures
    • Recordkeeping

    Proxy voting policies and procedures

    • Obligations
    • Recordkeeping

    Other prohibitions and requirements under the Advisers Act

    • Misleading or untrue statements
    • Anti-fraud provision
    • Referral arrangements
    • Use of the term

    Accommodations for registered foreign advisers

    		Privacy Laws
    • Regulation S-P

    Proposed Anti-Money Laundering Rule

    • Categories of advisers subject to the Proposed Rule
    • Obligations

    SEC Examinations, enforcements and penalties

    • Examination focus
    • Trading practices
    • Marketing advisory services
    • Valuation and pricing
    • Privacy of client records and information
    • Business continuity plans

    Conflicts of Interest

      Identifying conflicts

      • Email review
      • Employee training
      • Managing risks and conflicts of interest
      • Conflict focus areas
      • Gifts/entertainment
      • Outside business activities
      • Revenue sharing

      Internal Controls

        Examination process

        • Types of exams
        • Advance notice
        • Initial document request
        • Follow-up document requests
        • Identification of current risks/conflicts of interest
        • Identification of past risks/conflicts of interest

        Preparing for examination

        • A comprehensive annual review
        • - Risk assessment
        • - Preventing, detecting, and correcting
        • Tracking corrective action
        • Document production
        • - Electronic
        • - Hard copy
        • Role of CCO
        • - Oversight
        • - Facilitating exit interview

    Clients who register for this course will receive a complimentary 4-month subscription to FT.com. The Financial Times is the world's most respected financial newspaper, providing a broad assessment on finance, business and the industrial sector. The move to the electronic version follows an ongoing review of our environmental responsibilities as a global business and as part of the Pearson group. FT.com also has features that are not available in hard copy, such as: Special Reports, Alphaville, editor blogs, education sections and much more! Subscriptions will start within 6-8 weeks of the start of class and are limited to one subscription per client. (Please note: as of May 1, 2011, the electronic subscription replaces the hard-copy 3-month Financial Times subscription.)

    Lunch is included for all students taking day classes.