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Private Equity Fund Manager

As a registered investment adviser, a private equity fund manager is required to designate a Chief Compliance Officer. In addition, as a fiduciary, an adviser and related persons also owe a duty to place clients' interests ahead of their own. These duties include duties of trust, care and loyalty. The SEC has made it clear that they are closely examining private equity fund managers to ensure that they are taking these duties seriously, and abiding by them. The SEC has already brought significant enforcement actions against fund managers for alleged violations involving fraud; valuation; marketing; investment allocations; and expense allocations.

Our outsourced Chief Compliance Officer solution is designed to provide investment advisers with a Chief Compliance Officer, supported by a diversified compliance team with multiple skill sets, who will work to ensure the compliance function supports your fiduciary duty obligations. Members of our team have held executive level positions and possess diversified skill sets, usually including investment management, regulatory, operations, accounting, and audit.

With our outsourced CCO solution, clients can feel confident that they have the experienced support to help control and manage their regulatory obligations and mitigate their liability.

Using an outsourced CCO with access to the significant resources offered by our team can also be a prudent course of action because (1) an adviser may not have the necessary expertise or time with internal resources, and (2) we are independent.

Outsourced Chief Compliance Officer Service

The following are representative services:

  • Designing a dynamic compliance program with adequate policies and procedures that are customized to your business. We focus on those areas of concern raised by the SEC, including conflicts of interest, allocation of investment opportunities, co-investments and expenses.
  • Preparing and delivering firm-wide compliance training as expected by the SEC.
  • Ongoing sampling reviews of marketing materials;
  • Reviewing personal securities trading by an adviser's access persons (checking for timely reporting of annual holdings and quarterly transaction reports, unusual trading patterns, pre-clearance approvals, etc.);
  • Drafting compliance emails to be sent by the outsourced CCO or other officer regarding current regulatory initiatives, timely enforcement cases, or compliance reminders;
  • Conducting quarterly electronic communications review of e-mails, instant messages and/or text communications sent or received through your electronic systems;
  • Conducting annual employee compliance training;
  • Conducting an annual compliance program review in accordance with Rule 206(4)-7 under the Advisers Act, which review takes into consideration changes to your advisory business as well as changes to the Advisers Act and other relevant federal and state securities laws;
  • Reviewing of code of ethics logs, including gifts and entertainment, personal trading, outside business activities, etc.;
  • Quarterly compliance “checkups”;
  • SEC exam support; and
  • Reviewing all trade allocations (to the extent there is overlapping investment periods) and any co-investment or side-by-side investing with a firm's clients/investors and/or a firm's affiliated entities.

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...