Mandates Beyond the Advisers Act: Anti-Money Laundering, ERISA and ’34 Act Section 13 Reporting for Investment Advisers
April 28, 2015
Tuesday 1:00 PM - 3:00 PM (ET)
While the Investment Advisers Act of 1940 includes most of the rules and regulations an advisory firm needs to abide by to be compliant, other regulations affect advisory firms in significant ways and must be considered. This course surveys anti-money laundering, basic ERISA compliance for advisers and ’34 Act Section 13 reporting requirements for advisers - mandates that every advisory firm needs to understand and might need to incorporate into its compliance program.
- The focus of the first topic of this session is anti-money laundering for investment advisers. The SEC and FINRA have made it clear that a Bank Secrecy Act (BSA)/Anti-Money Laundering (AML) compliance program should be designed commensurate with the organization’s unique risk profile. The same risk management principles that your organization uses in traditional compliance and operational areas should be applied to assessing and managing BSA/AML risk. Two of the goals in creating a BSA/AML risk assessment are to:
a) Identify vulnerable areas that could be used to facilitate the movement of illegally gotten or used funds; and
b) Develop processes and procedures to mitigate that risk. AML experts will help you get the basics right and aid you in evaluating the comprehensiveness of your current BSA/AML risk assessment by suggesting areas that may have been overlooked; helping you understand how due diligence and documentation lend credibility to your organization’s risk assessment; and providing guidance in creating a sound written risk assessment summary.
- The focus of the second topic of this session is a survey of basic Employee Retirement Income Security Act (ERISA) compliance for investment advisers.
ERISA governs U.S. pension, profit sharing and employee benefit plans. Like the Advisers Act, ERISA imposes fiduciary duties on certain service providers (including most investment advisers to ERISA plans); unlike the Advisers Act, ERISA does not allow plan fiduciaries to address conflicts of interest through disclosure. Instead, ERISA imposes a series of prohibited practices on plan fiduciaries. Anyone providing advice or other fiduciary services to ERISA plans must learn what these prohibited practices are and how they may require you to treat ERISA clients differently that your other advisory clients.
- The focus of the third topic of this session is a summary of Section 13 disclosure requirements under the Securities Exchange Act of 1934 and the applicability of these filings to certain investment advisers.
After attending this course, attendees should be able to:
- Assess how anti-money laundering rules affect your firm
- Identify AML/BSA/OFAC examination priorities and develop policies and procedures to avoid common deficiencies
- Determine when a service provider to an ERISA plan becomes an ERISA fiduciary
- List the prohibited practices under ERISA that apply to investment advisers
- Distinguish advice to an ERISA plan from advice to plan participants
- Identify special ERISA considerations regarding 401(k) rollovers
- Define the basic mechanics of Form 13F, Schedule 13D, Schedule 13G and Form 13H reporting requirements to help determine if these filings apply to your firm
For Whom: Designed to increase the professional competence of investment adviser professionals with legal, compliance, operations and management responsibilities.
Suggested Skill Level: Basic
Instructional Method: Group Internet-Based
Pre-requisites for participation: No prerequisites are required.
Advanced Preparation: None