These are my notes from the Private Fund Compliance Forum 2013. They are live notes, so please forgive the typos. Brian Kawakami, Partner, Ascendant Compliance Management Charles Lerner, Principal, Fiduciary Compliance Associates LLC, and Editor, The US Private Equity Fund Compliance Guide and The US Private Equity Fund Compliance Companion Jim O’Connor, Chief Compliance Officer,…
Tag: Rule 206(4)-7
Professional Certifications for Compliance
Do you need a certification to be compliance professional? “Need” is not the right answer. Compliance is still a diverse and complex field, where the needs can differ remarkably from firm to firm. I’m a bit skeptical that a generic certificate program is likely to help me much with my job or professional development. Whatever…
Three Compliance Failures
One for the money, two for the show, three because uh – uh, comes before four, and here we go! – Tigger On Monday, the Securities and Exchange Commission announced not one, not two, but three actions against investment advisers for failing to put in place compliance procedures designed to prevent securities law violations. The…
Earthquakes, Hurricanes, and Disaster Recovery
Monday’s East Coast earthquake was far from a disaster. I just thought I had too much coffee, until I heard others in the hallway say “Do you feel that?” Then I realized the shaking was not just because I was over-caffeinated. Even though significant earthquakes are rare on the East Coast, hurricanes are not. Irene,…
Job Description For CCOs of Advisers to Private Investment Funds
Back in 2005, Associate Director Office of Compliance Inspection and Examinations of the SEC, Gene Gohlke gave a speech addressing hedge funds who would soon have to register under the doomed hedge fund rule. He focused on what the funds needed in a Chief Compliance Officer. Rule 206(4)-7 requires a registered investment adviser to designate…
Disciplinary Actions Against Chief Compliance Officers
The Chief Compliance Officer should be a model for employee conduct. I don’t thing there is any better way to lead and educate than to set an example. Not all Chief Compliance Officers succeed in this role and some get subject to discipline. Here are some ways to get in trouble. Participation in Wrongful Conduct…
Investment Advisers and Business Continuity Plans
When an investment adviser is designing its policies and procedures you need to identify the risks for their firm so they address those risks. A big risk is missing an applicable requirement under the regulatory scheme. So you sit down with the regulations and tie them to your specific policies and procedures. An easy one…
Chief Compliance Officers and Private Investment Funds
If you are running a private investment fund, do you need a chief compliance officer? If you are not registered with the SEC, it’s a gray area. If you are registered with SEC, then “yes.” Rule 206(4)-7 requires a registered investment adviser to “[d]esignate an individual (who is a supervised person) responsible for administering the…
Code of Ethics for an Investment Adviser
With the upcoming requirement that advisers to many private investment funds must register with the SEC, I figured it was time to look at some of the requirements that registration will impose. Section 204A of the Investment Advisers Act requires registered investment advisers to “establish, maintain, and enforce written policies and procedures reasonably designed, taking…