Developing a Tailored Compliance Testing Program: Forensic Focus
August 9, 2011
1:00 PM – 3:00 PM ET
Description: A central and necessary component of a sound compliance program is testing your firm's actual compliance with its written policies and procedures. The SEC, in its release adopting Rule 206(4)-7 under the Investment Advisers Act of 1940, stated that an investment adviser's policies and procedures should employ "compliance tests that analyze information over time" to determine the effectiveness of its compliance policies and procedures. In May 2005, the SEC staff suggested using three compliance tests: Transactional, Periodic and Forensic. The SEC staff has repeatedly sent clear signals in CCOutreach Seminars, speeches and elsewhere that they are taking the issue of forensic testing seriously. Andrew Donahue, Director of the SEC Division of Investment Management, has encouraged the implementation of forensic testing. SEC Document Request Lists typically request the following: "Information relating to the firm's compliance testing, including any compliance reviews, quality control analyses, surveillance, and/or forensic or transactional test performed by the firm. This information should include any significant findings, both positive and negative, of such testing and any information about corrective or remedial actions taken regarding these findings. Staff will review these documents on-site."
This presentation will focus on developing a tailored and comprehensive compliance testing plan and effectively employing forensic testing to monitor your firm's compliance program.
After completing this course you should be able to:
- Define the basic parameters of the new "mid-sized adviser" registration threshold and other new prohibitions on SEC registration and their impact on certain investment advisers.
- Pinpoint key changes in determining assets under management.
- List the changes to Form ADV reporting requirements for both registered and "exempt reporting" investment advisers.
- Apply new amendments to the "pay to play" rule.
For Whom: Chief Compliance Officers, Management, Compliance Staff at all levels, Internal auditors, Legal counsel, Marketing personnel
Suggested Skill Level: Intermediate
Instructional Method: Group-Internet-Based
Pre-requisites for participation: No prerequisites are required.
Continuing Education Credits:
See NRS Continuing Education Guide
Recommended CPE Credit: 2
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