Regulatory Compliance Association Reviews

SEC Compliance Seminar 2016

SEC Exam Areas Receiving HIGHTENED Scrutiny

FATF Advisory

DATE: MAY 17TH, 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