Regulatory Compliance Association Reviews

SEC Compliance Seminar 2016

SEC Exam Areas Receiving HIGHTENED Scrutiny

FATF Advisory

LOCATION: New York Marriott Marquis
DATE: November 2, 2016


Standard Registration: $898
Subsidized Registration: $698 
PracticEdge Members: $398
RCA myUniversity: Complimentary (Contact Your Curriculum Advisor)

8 hours of CLE, CPE and CCE (The RCA is the exclusive programmatic accreditation agency for Continuing Compliance Education)

During its recent National Seminar, the SEC identified several areas to receive heightened scrutiny during its examination process.

For hedge fund advisers:

1 – Compliance Failures

  • Weaker programs at smaller firms
  • Conflicts of interest at larger firms
  • Exclusion of research from compliance
  • Lack of compliance “buy-in”

2 – Side-by Side Management / Proprietary Capital

  • Disclosure of proprietary and near-prop accounts
  • Disclosure of liquidity differences between fund share classes, proprietary accounts and SMAs
  • Trade, expense and capital allocation

3 – Liquidity and Valuation

  • Scope creep into illiquid securities during drawdown periods
  • Liquidity assessment of semi-illiquid securities
  • Valuation of side pockets in uncertain markets

For private equity advisers:

1 – Compliance

  • Independent, knowledgeable and credible CCO, with access
  • CCO expert in identifying and curing conflicts
  • Updated policies and procedures
  • Clear expense allocation policies and procedures

2 – Expenses Disclosures

  • Management team compensation
  • Back-office outsourcing

3 – Fee disclosures

  • Accelerations
  • Offsets

4 – Conflicts of Interest and Disclosures

  • Co-Investment practices
  • Portfolio company lending

5 – Marketing

  • Valuation, deal attribution and “hidden team” issues
  • Representations regarding “fund extensions”
  • Performance attribution for “spinouts”
  • “Net return” disclosure when management fees occur outside the fund

For a copy the SEC’s Presentation, CLICK HERE