This webinar was co-hosted with Todd Cipperman and took place on Nov 17th 2016. In it we assess the most impactful regulatory developments of 2016, review results of Cipperman Compliance's recent CCS survey of financial industry C-Suite opinion leaders, and Todd gives you his take on the fluid regulatory environment. Watch recordings from the webinar here; https://mco.mycomplianceoffice.com/mco-webinar/the-evolving-regulatory-landscape-practical-insights-for-compliance-officers

1. Building a Culture of ComplianceBuilding a Culture of Compliance
The Evolving
Regulatory Landscape
November 17, 2016

2. Building a Culture of Compliance
Trending…
• Personal liability
• Fiduciary duty/conflicts
• Wrap programs
• Distribution-in-guise
• DoL Fiduciary Rule
• Whistleblowers
• Gatekeepers
• Compliance programs
• CCO liability
• Private equity
• Compliance Survey
• Election

3. Building a Culture of Compliance
Personal Liability
• Robust enforcement statistics
• SEC names individuals in 80% of cases
• The DoJ Yates memo
• Cases against Senior and Mid-Level Execs
• Whistleblowers

4. Building a Culture of Compliance
Polling Question #1:
Have you changed your policies and procedures
because of concerns about the SEC’s enforcement
polices focused on individual liability?

5. Building a Culture of Compliance
Fiduciary Duty
• Product & investment recommendations
• Wrap programs
• Self-dealing and conflicts of interest
• Marketing and advertising
• Distribution-in-guise

6. Building a Culture of Compliance
Fiduciary Duty: Recommendations
• OCIE share class initiative
• Wrap programs
• Third party product due diligence

7. Building a Culture of Compliance
Polling Question #2:
Have you increased/decreased your product offerings
because of enhanced fiduciary responsibility about
recommending third party products?

8. Building a Culture of Compliance
Fiduciary Duty: Self-Dealing and Conflicts
• Favoring certain clients
• Undisclosed compensation
• Insider transactions
• Misuse of confidential information

9. Building a Culture of Compliance
Fiduciary Duty: Marketing & Advertising
• Distribution-in-guise
• Misrepresenting strategy
• Fees
• Performance
• AUM

10. Building a Culture of Compliance
Service Provider (Gatekeeper) Liability
• Administrators
• Auditors
• Directors
• Lawyers and Compliance Consultants

11. Building a Culture of Compliance
Polling Question #3:
Have you encountered heightened due diligence from
service providers?

12. Building a Culture of Compliance
Compliance Programs
• Outsourcing Alert
• Third-party compliance reviews
• Under-funding compliance
• Senior executive liability
• Code of Ethics

13. Building a Culture of Compliance
CCO liability
• Compliance or supervision: the Young case
• CCO liable for financial penalties: Haider
• CCO liability vs dual-hatting
• Recent CCO cases
• A talent drain
• The CCO standard of care

14. Building a Culture of Compliance
Polling Question #4:
Have you changed your policies and procedures to
address concerns about CCO personal liability?

15. Building a Culture of Compliance
Private Equity and Hedge Funds
• Private Equity
– The new SEC examinations and enforcement target
– Scrutiny of previously-accepted practices
– Compliance programs
• Hedge
– Emphasis on transparency and disclosure
– Technical violations

16. Building a Culture of Compliance
2016 C-Suite Compliance Survey
• Fewer SEC exams than expected
• Changing view of compliance
• Much talk, less action on P/P
• Spending increasing
• Dual-hatting declining

17. Building a Culture of Compliance
Election and Dodd-Frank
• Early indications: Hensarling, Atkins
• The CHOICE Act
• The regulatory infrastructure
• The legacy of Spitzer and Madoff
• Political realities
• The Sanders/Warren influence

18. Building a Culture of Compliance
Polling Question #5:
Will the election results be beneficial/harmful for the
asset management industry?

19. Building a Culture of Compliance
Practice Points
• You may need your own lawyer
• Every employee is a fiduciary
• Implement whistleblower procedures
• Re-think wrap programs
• Service providers add due diligence to client intake
• CCO may need to start acting like hall monitor
• Need to hire a regulatory compli-pro
• Private equity needs to “up” compliance game
• Move to professional compliance
• Third party compliance reviews

20. Q & A

21. - Manage by alerts not reports
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- Custom questionnaire builder
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Highlights

22. Building a Culture of Compliance
CCS helps registered funds and money managers create a
culture of compliance. CCS leverages the experience of a
multi-disciplinary team and takes full accountability for its
advice and services.
Read and respond to "Our Take" on important industry
developments at http://blog.cipperman.com or contact us to be
added to our daily e-mail alert distribution list.

23. Contact Us
MyComplianceOffice
Phone: (866) 951-2279
advance@mycomplianceoffice.com
www.mycomplianceoffice.com
Cipperman Compliance Services LLC
rprucnal@cipperman.com