Mastering the Investment Advisers Act of 1940: Parts 1 and 2

Understanding the intricacies and implications of the Investment Advisers Act of 1940 (Advisers Act) is fundamental to the core responsibilities of any investment adviser compliance professional. A section-by-section review of the Advisers Act brings renewed focus to the root source of each requirement, many of which are likely to be encountered in compliance departments of every size firm. Everyday situations are incorporated to bring the Advisers Act to life, including practical advice about writing, implementing and maintaining policies to create strong internal controls that work within your firm’s business operations.

Part 1: Sections 201 through 205 and related SEC Rules 

Highlights include:

• Overview of the Investment Advisers Act of 1940

• Definitions

• Who Must Register

• Exclusions and Exemptions from Definition of Investment Adviser

• State and Federal Responsibilities

• Reports by Investment Advisers, which includes in depth coverage of Books and Records and Disclosure Statements

• Prevention of Insider Trading and Anti-fraud Provisions (Investment Advisers Codes of Ethics)

• Investment Advisory Contracts

Part 2: Sections 206 through 222 and Related SEC Rules

Highlights include:

• Prohibited Transactions by Investment Advisers, the focus of recent regulatory activity

• Performance Fees

• Exemption from Performance Fee Prohibition

• Agency Cross Transactions

• Advertising

• Custody

• Client Solicitations

• Disclosure to Clients

• Proxy Voting

• Compliance Programs Rules

Each course provides the instruction and tools to:

1. Demonstrate a clear understanding of the structure, content and terms of the Advisers Act for quick, easy reference and response

2. Use the framework of the Advisers Act to prioritize work flow and assign tasks for establishing effective policy, procedures and internal controls, and for minimizing risk and fines

3. Further develop judgment needed to apply appropriate regulations and rules to assure complete coverage of compliance tasks

4. Build a risk averse compliance and supervisory program with internal controls

5. Understand the role, responsibilities and potential liability of the Chief Compliance Officer (CCO)

6. Identify the rudiments of an annual compliance review

7. Pinpoint the SEC areas of concern that should drive required written compliance policies and procedures

8. Understand the interaction between the rule and the risk-based SEC examination program

9. Create checklists and timetables that ensure complete compliance

10. Explain the relationship among internal controls, internal reviews and the examination process to better determine your firm’s compliance risk and to take actions to minimize your firm’s exposure to more frequent examinations, enforcement investigation, and fines

These two all-day courses serve as the anchors of the Investment Adviser Compliance Certificate Program^sm.