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Private Fund Adviser Compliance

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With private fund adviser registration now a necessity, compliance for hedge funds and private equity funds tops the list of concerns for managers. SEC3 offers an extensive suite of customizable compliance services for managers of hedge fund and private equity funds. Our services are tailored to your needs and can be either on a one-time or recurring basis. Examples of potential services include, but are not limited to:

  • Annual Reviews
  • Quarterly Reviews
  • Risk Assessment and Gap Analysis
  • Compliance Testing and Analysis
  • Mock SEC Examinations
  • Training
  • Customized Compliance Services
  • Trading Reviews

In addition to our traditional compliance services, we have developed a suite of 3 specific options designed for private fund managers depending on their needs.

Registration with Customized Compliance Manual

Designed for the adviser who only needs assistance with the registration process.

SEC3 offers a complete registration solution that includes full registration with the SEC (or state):

  • Initial phone interview to allow SEC3 to understand your business to ensure all necessary filings are properly completed;
  • Establish your necessary online account with FINRA by filing the Entitlement Forms;
  • ADV Preparation and filing:
    • Part 1A (and 1B if applicable) on the IARD, including all applicable schedules;
    • Part II, including all applicable schedules;
  • Registration of investment adviser representatives.
  • Unlimited registration consulting until registration approved.
  • develop a customized compliance manual including written policies and procedures based on your unique business
  • Staff training on your compliance manual and SEC registration; and
  • If required, unlimited consultation regarding development of an SEC compliant Code of Ethics.

First 15 Months of SEC Registration

Designed for the adviser who can use some longer term assistance with the new SEC requirements.

SEC3 offers an initial 15-month compliance solution that includes full registration with the SEC (or state) and 15 months (to get you through the first required Annual Compliance Review) of ongoing compliance assistance including:

Registration Period:

This includes all the items discussed above in Option #1, Registration and Customized Compliance Manual. 


After SEC Registration Approval:

  • Development of a compliance calendar;
  • Regular CCO training and assistance with administering your compliance calendar;
  • Unlimited telephone consulting;
  • IARD Administration;

During the course of the first 15 months, we will provide documented reviews of your compliance policies and procedures in accordance with your compliance calendar. These reviews will be designed to address each manager’s unique risks and conflicts-of-interests and they would include, but not be limited to:

  • Code of Ethics reports;
  • Review of marketing pieces;
  • Review of investor correspondence and firm commentary;
  • Review of websites;
  • Review of offering and subscription documents;
  • Review of financial statements;
  • Review of capital accounts;
  • Review of performance calculations and other metrics;
  • Review of performance disclosure;
  • Review of solicitor agreements and disclosure;
  • Review of best execution and broker allocation;
  • Review of trade error policies;
  • Review of trade allocation including “hot issues”;
  • Review of ERISA assets;
  • Review of soft dollar arrangements;
  • Review of proprietary trading if applicable; and
  • Review of compliance with Investment mandates, guideline and restrictions.

We will also assist with your first annual compliance review. Each registered adviser is required to review their policies and procedures annually to determine the adequacy and effectiveness of their implementation. These reviews will also consider any compliance matters that arose during the year, any changes in the business activities of the adviser or its affiliates, and any changes in the Advisers Act or applicable regulations that might suggest a need to revise the policies or procedures.

Compliance Partnership Comprehensive

Designed for the adviser who wishes to outsource various pieces of their compliance requirements.

This is our most comprehensive offering where SEC3 partners with private fund managers providing a turnkey solution where we administer and perform the heavy lifting of the compliance program. It can be thought of as outsourcing a large part of your compliance function but ensuring your appointed CCO fully understands all aspects of your program and the work we have performed. We will perform the majority of the required testing and provide the necessary documentation and reporting to the CCO and senior management. Depending on the specifics of your business, we will work with you to determine the most efficient and cost effective balance of compliance functions between our two forms. Whether we are performing 8 hours, 24 hours or more a month of compliance services, the cost will be far less than hiring an additional high-level compliance professional. The end result will be a robust compliance program, which is properly administered with necessary testing and documentation and reporting to senior management.

Registration Period:
This includes all the items discussed above in Option #1, Registration and Customized Compliance Manual section.

After SEC Registration Approval:
We will administer and as mutually agreed, perform the majority of tasks involved with your compliance program. At the same time, we will work very closely with you to ensure your appointed CCO and other senior management understands all aspects of the compliance program and the work we have performed including the results of our testing.

The main difference between this offering and the First 15 Months of SEC Registration is that when we partner with you, we will perform the majority of the tasks associated with your compliance program as opposed to only reviewing what you have done. This means we will perform the testing and documentation. We would be onsite for a specified number of hours every month to perform our compliance functions. We will also be available for consultation at any other time.

Newsletter

Get the latest compliance news and insights - delivered weekly. The SEC3 Communique covers all compliance topics. CCO3 focuses on Mutual Fund CCO topics.
tip: check both to keep informed!

Communiques

SEC3 Newsletter

Commentary: How Compliance Officers & Firms Can Help Limit CCO Personal Liability This article originally appeared on the Thomson Reuters Regulatory Intelligence subscription service for compliance and risk professionals and is... read more »

Wishing One-and-All a Happy, Healthy and Prosperous New Year

We hope each of you found some peace and tranquility in the company of loved ones this holiday season and want to wish one-and-all a happy, healthy and prosperous New... read more »

Understanding How to Mitigate Liability and Navigate Insurance Options (Part II)

In June, we shared our thoughts around common insurance gaps and insurance riders that CCOs as well as managers should understand. One of the gaps we shared related to pre-claim... read more »

Cybersecurity - What have we learned and what have we done?

Regulatory Landscape In April 2015, the Securities and Exchange Commission ("SEC's") Division of Investment Management issued a guidance update, identifying cybersecurity as a critical issue. Several regulators are in fact focusing... read more »

Gatekeepers in SEC Crosshairs

Ever since the enforcement cases were announced as part of the SEC’s “Operation Broken Gate,” the SEC enforcement division has continued to ramp up scrutiny of gatekeepers including third-party service... read more »

Anna M. Bencrowsky, CRCP, CMFS Joins SEC3

We are pleased to announce that Anna M. Bencrowsky, CRCP, CMFS has joined SEC3 as a Senior Consultant. Prior to joining SEC3, Anna held several executive compliance positions. Anna recently retired... read more »

Events

May 23, 2017 - Webcast: WannaCry Ransomware: Were You Really Protected or Just L…

When: Tuesday, May 23rd, 2017 | Schedule: 12pm - 1pm EST Who: Paul Caiazzo, CEO and Co-Founder, TruShield Security Solutions Michael Brice, Founder, BW Cyber Services John Lukan, Managing Director, SEC Compliance Consultants, Inc. We...

June 14, 2017 - Compliance Breakfast Briefing

8:30-9:00am - Networking and Continental Breakfast 9:00-10:30am - Program Location: Willkie Farr & Gallagher LLP | 600 Travis Street | Suite 2310 | Houston, TX Barry Barbash from Willkie Farr & Gallagher LLP,...

June 13, 2017 - Compliance Breakfast Briefing

8:30-9:00am - Networking and Continental Breakfast 9:00-10:30am - Program Location: Haynes and Boone, LLP | 2323 Victory Avenue | Suite 700 | Dallas, TX 75219 Validated parking is available in the garage attached...

May 31, 2017 - Chicago

9:00-9:30 a.m - Networking and Continental Breakfast 9:30-11:00 a.m - Program Location: Baker & McKenzie LLP | 300 East Randolph Drive | Suite 5000 | Chicago, IL 60601 Kristin Gonzalez and Jerome Tomas...

May 17, 2017 (NYC WIMF)

This event is by invitation only. Please email info@seccc.com to learn more.

May 15, 2017 (NYC Chief Compliance Officer Roundtable)

9:00-9:30am - Networking and Continental Breakfast 9:30-11:00am - Program Location: Blank Rome LLP | The Chrysler Building | 405 Lexington Avenue | New York, NY 10174 | 22nd Floor Boardroom | Phone:...

Webcast: The Most Insidious Cybersecurity Threat Is Also The Least Understood

When: Tuesday, April 25th | Schedule: 12pm - 1pm EST Who: Paul Caiazzo, CEO and Co-Founder, TruShield Security Solutions Michael Brice, Founder, BW Cyber Services John Lukan, Managing Director, SEC Compliance Consultants, Inc. Ransomware, the...

CCO Liability (Part III): Managing Liability Webinar

In this webinar, panelists discuss indemnifications and insurance as potential remedies to address the direct financial risks to a CCO. Attendees will learn: What terms and conditions should Chief Compliance Officers be...

Webinar: CCO Liability (Part III): Managing Liability: Navigating Indemnities an…

When: Tuesday, February 21, 2017 Schedule: 11:00am ET / 10:00am CT / 9:00am MT / 8:00am PT / 7:00am AT Description of Webinar: The National Society of Compliance Professionals is pleased to host...

Webcast: SEC 2017 Examination Focus Area – Cybersecurity Testing

Penetration Testing & Vulnerability Assessments - Examining the SEC & FINRA Requirements When: Wednesday, January 25th | Schedule: 12pm - 1pm EST Who: Paul Caiazzo, CEO and Co-Founder, TruShield Security Solutions Michael Brice, Founder,...

Chief Compliance Officer Roundtable: Breakfast Briefing

When: October 20, 2016 Where: Blank Rome LLP | The Chrysler Building | 405 Lexington Avenue | New York, NY 10174 | 22nd Floor Boardroom | Phone: 212.885.5000 Thomas Westle and Janaya...

Practicing Law Institute - Hedge Fund Management 2016

When: September 15, 2016 Where: New York & concurrent webcast | 1177 Avenue of the Americas | New York, NY 10036 Schedule: 9:00 am – 5:00 pm Janaya Moscony, President of SEC3 will...

CHIEF COMPLIANCE OFFICER ROUNDTABLE: BREAKFAST BRIEFING

When: April 13, 2016 Where: Blank Rome LLP | The Chrysler Building | 405 Lexington Avenue | New York, NY 10174 22nd Floor Boardroom Thomas Westle and Janaya Moscony, along with industry experts,...

COMPLIANCE SCIENCE SUMMIT 2015

When: November 17, 2015 Where: Convene Midtown East | 730 Third Avenue | New York, NY 10017 Janaya Moscony, President, SEC Compliance Consultants, Inc. will be moderating a...

CHIEF COMPLIANCE OFFICER ROUNDTABLE: BREAKFAST BRIEFING

When: October 13, 2015 Where: Blank Rome LLP | The Chrysler Building | 405 Lexington Avenue | New York, NY 10174 22nd Floor Boardroom Thomas Westle and Janaya Moscony, along with...