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Due Diligence

Operational Due Diligence services focus on all aspects of operations and, depending on the engagement, may include extending beyond the investment manager’s operations. SEC3 will extend the reach and assess the investment vehicles’ structure and the risks related to activities performed by the services providers (administrators, transfer agents, auditors and lawyers etc.) We will drill down and provide a detailed report of our findings against the backdrop of the industry’s current best practices. Based on our assessment and through discussions with you, we offer recommendations, suggest practical enhancements, and assist in the implementation. We recognize each client is unique and always customize our deliverable to specifically meet those unique client needs whether they are investors, managers, directors or even regulators. Prior to performing any engagement, we sit down with each client to gain a thorough understanding of their due diligence focus and agree on a detailed scope for the engagement. Quite often, we are able to provide considerable input at this stage and as we identify areas of risk that the client may not have yet considered.

Private Fund Due Diligence

Let's address the semantics. A "compliance review" and an "operational due diligence review" are not necessarily mutually exclusive. How can an operational due diligence engagement be performed without understanding the compliance posture of the subject entity? While a compliance review of a regulated business must also address the applicable regulation, a review of both regulated and unregulated entities examine similar facets of the operations. There is compliance with regulatory rules, compliance with self imposed firm policies and procedures, and there are best practices to consider. All address operational risk at some level. The risk of inadequate compliance for both regulated and unregulated entities carries significant exposure which could impact operations. We believe many aspects of a traditional compliance review are only a subset of an operational due diligence review.

Read more: Private Fund Due Diligence

 

Risk: Operational vs Investment Risk

Successfully managing risk is key to achieving investment success. There are two major risks - Investment & Operational - and it is important that both are being properly assessed and monitored.

Read more: Risk: Operational vs Investment Risk

 

Why Private Funds Require Operational Due Diligence

The answer may not be what you think.

Read more: Why Private Funds Require Operational Due Diligence

 

Newsletter

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

Communiques

79 Advisers Self Report and $125 Million Returned to Investors

In line with the OCIE’s National Exam Priorities targeting its examination efforts to prevent harm to retail investors the SEC announced March 11, 2019, that it would be returning $125... read more »

CFTC Releases Exam Priorities

In a first time release, stemming from agency initiatives to improve its relationship with regulated entities, the Commodity Futures Trading Commission (CFTC) recently announced its 2019 Examination Priorities for registrants... read more »

FINRA’S Box of Chocolates

While we know you prefer a box of chocolates today instead of this industry update on compliance, this one is a gift and hence, will not add to your ever-growing... read more »

A Motivated Agency: The SEC Closing the Loop on the Edgar System Cyber Breach

You may recall after Clayton took the helm as Chairman at the SEC, the agency disclosed that it had its own cyber breach and the Edgar system was compromised. Today,... read more »

Examiners Take Reprieve with Gov’t Shut Down, But CCOs Must Carry On

These government shut downs don’t usually go on indefinitely. Before we blink an eye, examiners will be back on the beat. CCOs must stay vigilant. On December 20th the SEC’s Office... read more »

Pre-Dating & Back-Dating are Equally Risky

The SEC today suspended three accountants formerly of BDO USA LLP for improper professional conduct during its 2013 audit of AmTrust Financial Services Inc., an exchange-listed insurance company. According to the... read more »

Events

Chief Compliance Officer Roundtable: Breakfast Briefing - November 8, 2018

When: November 8, 2018 Where: Blank Rome LLP | The Chrysler Building | 405 Lexington Avenue | New York, NY 10174 | 22nd Floor Boardroom | Phone: 212.885.5000 Schedule: 9:00-9:30am - Networking...

Dorsey PF 2018 Symposium

When: September 26, 2018 (8:30 am - 6 pm Where: Dorsey & Whitney LLP | 51 W. 52nd Street | New York, NY 10019 Directions > SEC3’s President, Janaya Moscony will join...

Chief Compliance Officer Roundtable: Breakfast Briefing - June 14, 2018

When: June 14, 2018 Where: Blank Rome LLP | The Chrysler Building | 405 Lexington Avenue | New York, NY 10174 | 22nd Floor Boardroom | Phone: 212.885.5000 Schedule: 9:00-9:30am - Networking...

Webinar: 2018 SEC Exam Priorities & Recent Exam Highlights

Don’t miss the opportunity to meet with us in person to discuss the topics that matter most to you. Tobin S. Cochran, Managing Member/President of Focus 1 Associates, LLC and...

Chief Compliance Officer Roundtable: Breakfast Briefing - February 7, 2018

When: February 7, 2018 Where: Blank Rome LLP | The Chrysler Building | 405 Lexington Avenue | New York, NY 10174 | 22nd Floor Boardroom | Phone: 212.885.5000 Schedule: 9:00-9:30am - Networking...

Upcoming Events - September & October 2017

Upcoming Events Don’t miss the opportunity to meet with us in person to discuss the topics that matter most to you. SEC3 is teaming up with industry experts in NYC to discuss...

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...