Annual 2019 Core Compliance Workshop

8:00 AM | Registration & Welcome Address 

8:30 AM | Breakfast & Keynote Speaker

(SEC Associate Regional Director - Invited)

9:00 AM | WORKSHOP ONE

Best Practices for Identifying and Mitigating Risks and Conflicts

Tina Mitchell, Core Compliance
Casey Jones, Compliance-Minded, LLC

Risks and conflicts are an everyday part of an investment adviser’s business, and as a fiduciary a firm must continue to identify, address, and disclose those applicable to its services.  These also remain high focus areas for regulators during exams of advisory firms. While risks and conflicts come in many shapes and sizes, during this session we will be focusing on those commonly associated with some of the more “typical” services offered by investment advisory firms.   Through a hypothetical case study, we will:

• Identify the types of risks and conflicts pertaining to the case study
• Examine the difference between risks and conflicts
• Walk through important mitigation steps
• Consider methods for providing disclosures to clients
• Discuss appropriate compliance testing and controls protocols

10:15 | Break

Regulatory Considerations for Servicing Senior Investors

Kurt Nunez, Core Compliance
Orange County Adult Protective Services

As the Baby Boomer generation and the investing public ages, investment advisory firms must understand the issues involved in being a fiduciary to Senior Investors.  Firms must also develop strong Policies and Procedures for dealing with the issues related to Senior Investors including diminished capacity and elder financial abuse.  Firm should also develop training programs to ensure their personnel are well versed in dealing with elderly clients and the particular related issues.  In this session, we will use hypothetical case studies to address:

• Understanding and identifying Diminished Capacity
• Understanding and identifying Elder Financial abuse
• New and existing regulations governing Senior Investors
• How various existing regulations also apply to Senior Investors

Cybersecurity: Threats, Incidents, and How to Prepare
Adam Stutz, Core Compliance
Wes Stillman, Right Size Solutions

2018 has seen a rise in the number and sophistication of cyber-incidents launched against institutions worldwide, and according to the IAA 2018 Investment Management Compliance Testing Survey¹, 81% of respondents listed cybersecurity as their highest area of concern for the fifth straight year. Going into 2019, the investment management industry will be sure to see an ever-evolving landscape of sophisticated threats, including: cryptojacking; software subversion; and, a rise in attacks in the cryptocurrency ecosystem². In light of these threats, an effective cybersecurity policy remains a crucial component of an adviser’s compliance program. During this session, we will discuss current threats and highlight high profile cyber-incidents that occurred during 2018 and provide attendees with an incident response plan (“IRP”) template along with practical tips on how best to prepare and execute your IRP.

During this session:

• You will learn about current cyber-threats and cyber-incidents;
• We will review the continued impact of RT Jones and how it continues to shape the SEC’s view of cybersecurity;
• We will look at lessons learned from the SEC’s recent enforcement action brought against Voya Financial Advisors; and
• You will receive take-away tips for on how to implement your IRP as well as how to train your employees

¹ “2018 Compliance Testing Survey: Cybersecurity Still Top Concern, Use of Technology on the Rise.” Investment Adviser Association, Investment Adviser Association, 25 July 2018, www.investmentadviser.org/news/newsreleases/july-25-2018.

^{2 “}The Biggest Cyber Threats to Watch Out for in 2019.” Security Magazine, The Chertoff Group, 13 November 2018, https://www.chertoffgroup.com/news/the-biggest-cyber-threats-to-watch-out-for-in-2019.

Passing With Flying Colors: How to Prepare for an SEC Examination

Michelle Jacko, CSCP, Core Compliance
Chris Stanley, Beach Street Legal

Last year the SEC examined 15% of its registrants, and the number is expected to rise. During this session, we will discuss current examination focus areas as well as the type of examinations being performed by the staff.  Through a case study we will evaluate hypothetical examination requests and discuss factors and resources you should consider when providing documents and responding to questions.  Finally, we will provide you with an examination checklist and offer practical tips on how to best prepare for an SEC exam.

During this session:

• You will learn about the latest SEC examination focus areas, including advisory fees and succession planning;
• Through case studies, we will evaluate what you can expect during the exam and how you can prepare; and
• Our take away checklist and action items will provide a valuable resource in how to prepare for your next next examination.