Two Persistent Compliance Challenges: Insider Trading and Advisory Contracts

Course Description:

The ongoing surge of insider trading investigations and civil and criminal enforcement actions involving Wall Street professionals is a reminder of the importance of an investment adviser having effective policies and procedures to detect and prevent the misuse of material nonpublic information. This mission-critical topic will be a focal point of the course.

Section 204A requires investment advisers to establish, maintain and enforce written policies and procedures reasonably designed to prevent the misuse of material nonpublic information by the firm or its associated persons. The panel of experts will discuss the development of the law of insider trading, recent insider trading cases involving securities professionals, and elements of an effective insider trading policy and code of ethics.

This session will also cover the Advisers Act Section 205 which governs the SEC requirements for advisory contracts, which includes an opportunity to explore industry standards in this area

Learning Objectives:

After attending this course, attendees should be able to:

  • Identify the elements of an effective insider trading policy to help detect and prevent the misuse of material nonpublic information
  • Explain and implement the requirements of SEC Rule 204A-1: Investment Adviser Codes of Ethics
  • Employ processes under your code of ethics to effectively prevent and detect insider trading and monitor personal securities trading by adviser personnel
  • Increase awareness of industry standards for client agreements
  • Use practice points to help improve your firm’s advisory agreement

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

Suggested Skill Level: Intermediate

Instructional Method: Group Internet-Based and Group Live

Prerequisites for participation: No prerequisites are required. However, attendees can benefit by reviewing the Investment Advisers Act of 1940, especially Sections 204A and 205, and Rule 204A-1, to become familiar with the structure and terms.

Advance Preparation: None

Continuing Education Credits: TBD

NRS Continuing Education Guide