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.

No sessions currently available. Contact client services to get the next available date.
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.