Regulatory Compliance Association Reviews

Managing Your 2016 Annual Rule 206(4)-7 Review™

Practice Edge 02

Date: January 28, 2016
General Session: 12 Noon to 1:30 PM EST
Location: Webcast (Free)

Interested in Continuing Compliance Education™, CLE or CPE (A & A hours)? Attend via the RCA’s Online University (On Demand) — free for Practice Edge Elite Members

Become a Practice Edge Elite Member

Rule 206(4)-7 (the “Compliance Rule”) requires each investment adviser registered (or required to be registered) with the Securities and Exchange Commission (the “SEC”) to: (i) adopt and implement written policies and procedures reasonably designed to prevent violation of the Advisers Act and related rules (ii) review, no less frequently than annually, the adequacy of the policies and procedures and the effectiveness of their implementation; and (iii) designate a Chief Compliance Officer (“CCO”) responsible for administering those policies and procedures. As such, every CCO must consider, on an annual basis (and, in many cases, on an ongoing basis), how to best discharge this review obligation. Although not required by rule to be in writing, the overwhelming best practice is to memorialize the review through a written report. In most cases, this involves a narrative or matrix summary of compliance risks and obligations, an analysis of what policies and procedures apply to address and mitigate those risks and a discussion of how effective the program has been – including, in many cases, explanations of any compliance issues that arose during the review period. Reviews will also typically consider new legal, regulatory and business developments that impact the compliance function.

CCOs have freedom to determine what best fits their circumstances, but are wise to remember that the SEC Staff views the annual review process as a significant indicator of the adviser’s compliance regime and looks closely at related documentation on examination.

Students will master the following at the conclusion of this session:

  • Summarize the Rule’s Annual Review Requirement
  • Examine the Staff’s expectations for Annual Reviews
  • Discuss and apply industry best practices
  • Discover how to plan and conduct a review in different organizations
  • Identify recordkeeping and documentation requirements
  • Discuss how to address potential compliance issues that may be identified
  • Consider recent SEC areas of focus that must be considered

Session Chairman:

Walter Zebrowski, JD, CPA, Principal, Hedgemony Partners
Chairman, Regulatory Compliance Association

Senior Fellow from Practice:

Michael Sherman, JD, Partner, Dechert

Guest Lecturers:

Michael Donahoe, Chief Compliance Officer, PNC Capital Advisors
Richard Horowitz, JD, Partner, Dechert
Nauman Malik, JD, General Counsel & Chief Compliance Officer, Eagle Point

Register Now