Third-Party Vendor Management for Compliance Professionals


Course Description:

Recent scandals and market events have created a call for increased liability for those who are entrusted to undertake due diligence for investors in the selection of investment managers and hedge funds. Defensible due diligence standards continue to evolve to meet higher expectations of both regulators and investors. There is no bright line rule defining the right policy for your firm, but the SEC will require that your firm’s disclosures mirror actual practices. The panel will provide practical advice about specific compliance steps to meet these evolving standards for effective risk management.

Learning Objectives:

After attending this course, attendees should be able to:

  • Identify key elements of effective and defensible due diligence for traditional and alternative investments and outside managers
  • Apply lessons learned from review of SEC enforcement and examination activity
  • Avoid key traps when performing due diligence
  • Identify certain conflicts and other red flags that trigger the use of additional procedures
  • Determine when to consider use of external resources
  • Enumerate the questions you need to ask and perform effective on-site visits
  • Conduct operational, risk management and compliance reviews
  • Assess firm management and organization
  • Conduct background checks
  • Develop risk assessments and procedures to detect potential fraud
  • Conduct ongoing monitoring and testing

For Whom: Designed to increase the professional competence of investment adviser professionals with legal, compliance and management responsibilities

Suggested Skill Level: Intermediate

Instructional Method: Group-Internet-Based

Pre-requisites for participation: No pre-requisites are required.

Advance Preparation: None

Continuing Education Credits:

NRS Continuing Education Guide
Recommended CPE Credit: 2 in the Regulatory Ethics field of study
Recommended IACCP® CE Credit: 2
Recommended CA MCLE Credit: 2
Recommended CFP® Credit: Pending