206(4)7 Annual Reviews – Improving the Process and Firm Impact™
Date: January 29, 2015
General Session: 12 Noon to 1:30 PM
Location: Webcast (Free)
Interested in Continuing Compliance Education™, CLE or CPE (A & A hours), attend via the RCA’s Online University (On Demand) – free for Practice Edge Elite Members
To become a Practice Edge Elite Member, Click Here
Rule 206(4)-7 under the Investment Advisers Act of 1940 (the “Advisers Act”) requires an investment adviser registered with the Securities and Exchange Commission (“SEC”) to adopt and implement written policies and procedures reasonably designed to prevent violation, by the adviser and its supervised persons, of the Advisers Act. In addition to requiring registered investment advisers to adopt written compliance policies and procedures and appoint a chief compliance officer, Rule 206(4)-7 requires a registered investment adviser to review its compliance policies and procedures annually to determine their adequacy and effectiveness. As part of its annual review, an investment adviser must consider any compliance matters that arose during the previous year, any changes in the business activities of the investment adviser or its affiliates, and any changes in the Advisers Act or applicable regulations that might suggest a need to revise the policies or procedures. The investment adviser also must keep records documenting such annual review.
The SEC staff views the annual compliance review as a key element in ensuring that an investment adviser has implemented an effective compliance program and focuses significant attention to the annual review results and process when it examines advisers. Accordingly, investment advisers and their compliance staff’s must understand the annual review proceed and it implications.
Students will master the following at the conclusion of this session:
• Define the annual review required by the Rule.
• Examine the substantive scope of the annual review.
• Identify the staffing and other resources that an adviser will need to conduct the annual review.
• Identify and discuss best practices in conducting an annual review and SEC expectations.
• Examine strategies and related considerations for addressing identified compliance problems, including remedial actions.
• Recognize the importance of properly documenting the annual review and its results.
• Highlight “hot-button” compliance issues based on SEC guidance and recent examinations.
Walter Zebrowski, JD, CPA, Principal, Hedgemony Partners
Chairman, Regulatory Compliance Association
Senior Fellow from Practice:
Joseph M. Morrissey, JD, Partner | Investment Management Group, Seward & Kissel
Paul M. Miller, JD, Partner | Investment Management Group, Seward & Kissel
Scott Beechert, JD, General Counsel & Chief Compliance Officer, Bennett Management Corporation
Catherine Smith, JD, General Counsel, Guidepoint Global
Lawrence Block, JD, Chief Compliance Officer, Island Capital