Robert Stirling, Rainey Woodward, CCO/Head Trader, Globalt Investments
Description:
This seminar will focus on SEC regulations and fiduciary concepts governing investment adviser trading activities. Investment adviser firms have a fiduciary obligation to execute securities transactions for clients in such a manner that the client’s total cost or proceeds in each transaction is the most favorable under the circumstances. This seminar will provide insight into the meaning of “best execution,” and will focus on how strong policies and procedures can help an investment adviser fulfill his/her fiduciary obligations. Attendees will also learn how to identify, mitigate and manage potential conflicts of interest in the trading process.
The seminar will discuss the regulatory issues pertaining to “soft dollar” relationships. Section 28(e) of the Securities Exchange Act of 1934 provides a "safe harbor" for certain research and brokerage services received by an investment adviser in exchange for directing client commissions to a broker-dealer. In areas where soft dollar activities fall outside of Section 28(e), there is nothing to shield the investment adviser from claims that his conduct or activities violate ERISA or other Federal statutes. The Seminar will focus in particular on the revised definitions of eligible "research" and "brokerage services," as defined by the recent SEC interpretation.
For whom:
Investment advisers, compliance professionals (CCOs), internal auditors, legal counsel, managers, and anyone with an interest in compliance responsibilities.
Learning Objectives:
Understand best execution and how to evaluate brokerage allocation
Learn to manage portfolio trading compliance, including client restrictions, allocation and aggregation procedures and testing
Identify the conflicts of interest that effect best execution
Understand relevant requirements that arise from an adviser’s fiduciary duty
Section 28(e) and recent SEC guidance
Recognize required disclosures
Learn to spot red flags
Pre-requisites for participation:
No prerequisites are required. However, attendees can benefit by reviewing the Advisers Act of 1940 to become familiar with its structure and terms, as well as recent SEC soft dollar guidelines (available at http://www.sec.gov/rules/interp/2006/34-54165.pdf ).