Regulatory Compliance Association Reviews

Private Fund Professionals in the Cross-Hairs:  The Current Contours of Personal Liability for  Legal Counsel, Compliance Officers, and Portfolio Managers

Practice Edge 02

Private Fund Professionals in the Cross-Hairs:  The Current Contours of Personal Liability for  Legal Counsel, Compliance Officers, and Portfolio Managers

Date: May 15, 2014
General Session: 12 Noon to 1:30 PM
Location: Webcast (Free)

Judges, politicians, the press, and the public have all called upon the Securities and Exchange Commission to increase their focus on holding individuals responsible for securities law and rule violations. This has created elevated risks and pressures for private fund professionals – especially legal counsel, compliance officers, and portfolio managers. However, even two years after the conclusion of the Theodore Urban matter (where the SEC commissioners split evenly on the issue of when a general counsel could be liable for a failure to supervise), the contours of when legal, compliance and other investment adviser professionals may be deemed personally liable for a fund’s failings remains cloudy. In this RCA PracticeEdge session, law firm and in-house experts will examine and clarify the latest state of the law regarding individual liability for private fund employees (including the SEC’s latest guidance on legal/compliance liability post-Urban) and discuss specific policies and practices that can mitigate against the risk of legal, compliance, and investment professionals being held personally liable by the regulators.

Learning Objectives:

  • Understanding the genesis of GC/CCO liability beginning with In re Gutfreund;
  • Understanding the impact of the Urban case on GC/CCO liability;
  • Understanding the SEC’s Division Trading and Market’s most recent guidance on liability of compliance and legal personnel;
  • Understanding the key factors in determining supervisory liability for private fund professionals;
  • Understanding additional bases for individual liability for private fund professionals;
  • Learning about the most recent cases where professionals at investment advisers were found personally liable for a fund’s misconduct; and
  • Learning about policies and practices to mitigate against the risk of legal, compliance, and investment professionals being held personally liable by the regulators.

Session Chairman:
Walter Zebrowski, JD, CPA, Principal, Hedgemony Partners
Chairman, Regulatory Compliance Association

Senior Fellow from Practice:
Adam Wasserman, JD, Partner, Dechert

Guest Lecturers:
Mike Gilbert, JD, Partner, Dechert
Catherine Botticelli, JD, Partner, Dechert
John Roth, JD, GC & Chief Compliance Officer, Venor Capital