The SEC announced that it will hold a series of Investment Advisory and Investment Company Compliance Outreach Program seminars in several cities around the country starting in late August. The programs, jointly sponsored by the SEC’s Office of Compliance Inspections and Examinations (OCIE), Division of Investment Management, and Division of Enforcement’s Asset Management Unit, are principally designed for compliance professionals and senior company officers.
The SEC’s announcement said that these seminars will help the SEC staff to identify common issues found in related examinations or investigations and discuss industry practices, including how compliance professionals have addressed such matters. We would add that an opportunity to rub elbows with the staff in an environment where they feel a mandate to inform the industry is not a wasted opportunity. The questions that are asked and concerns that are raised by industry representatives often go some way toward helping the SEC fine-tune its exam program going forward. On the other hand, compliance professionals who attend these seminars should be careful not to discuss specific potential compliance violations under internal investigation, because, among other reasons, such discussions may inspire enforcement proceedings before the company has all the facts to determine whether a violation has in fact occurred.
Here are some of the highlights of remaining seminars, to put on your calendars (and RSVP early to reserve a space):
- Chicago – August 28
- an overview of the examination process, including how registrants are selected for examination and the most commonly identified deficiencies;
- three discussion panels on traded and non-traded real estate investment trusts, on investment companies with special emphasis on alternative investment funds and money market funds, and on current enforcement actions in the investment management industry;
- a breakout session focusing on custody and compliance for small advisers.
- New York – September 13
- for newly registered investment advisers, dual registrants, and investment adviser- affiliated broker-dealers;
- the program will discuss the SEC’s examination process, priorities, risk surveillance, conflicts of interest, and examination selection process.
- Atlanta – September 25
- enterprise risk management and effective compliance;
- key issues noted during examinations, including conflicts of interest and issues associated with fees, such as undisclosed remuneration, miscalculation, and layering.
- San Francisco – November 6
- an overview of the SEC’s examination processes and procedures and a discussion of OCIE and AMU priorities;
- valuation issues, including best practices for valuing assets by private and registered investment funds.