10:00 AM – 12:00 PM MST

Mastering Critical Skills for High Performance Compliance Professionals Time Matters: Time Management for Compliance Professionals

Presented by: Ann Oglanian — President and CEO, ReGroup, LLC
Kurt Wachholz — Chief Compliance Officer, Wellspring Wealth Management

Description: The stakes are high for compliance professionals. You are personally liable for administering a compliance program that protects your firm. Complex new regulations loom and the SEC wants you to continuously improve your compliance program. Juggling regulatory tasks in addition to operational challenges such as 'emergency' meetings, budgeting and managing multiple departments can leave you feeling time- constrained, overwhelmed, disheartened and disconnected. You are struggling to do what you have to do in the time you have to do it.

Keep your work day, your priorities and your sanity with practical Time Management techniques. Attend this interactive workshop to learn a time management system of processes, tools, techniques and skills you can use to more effectively manage your time – before it manages you.

Experienced instructors provide practical and specific guidance designed to help make better use of the time you have. Come learn the value of your time, understand how you're spending time, how you can better manage time through risk matching and goal setting, and the measurable benefits of better time management for you and your firm. In addition, we will review:

• Measuring opportunity cost
• Planning and setting goals
• Setting priorities with the 80/20 Rule
• Delegation vs. dumping
• Asking for – and getting – resources
• Doing the right things vs. doing things right
• Stress and procrastination
• Managing deadlines
• When to just say no
• How to hold an effective meeting
• Evaluating whether technology is really effective
• How to have some fun while you're getting things done

Learning Objectives:

• Increase productivity by refining your time management system
• Identify methods and tools that help you devote time to priorities that deliver the biggest return
• Help prevent burnout by implementing a more effective time management system

For Whom: Chief Compliance Officers, Ethics Officers, Compliance Staff at all levels, Management, Legal counsel, Auditors

Suggested Skill Level: Intermediate

Instructional Methods: Group-Live and Group-Internet-Based

Pre-requisites for participation: No prerequisites are required.

Continuing Education Credits: NRS Continuing Education Guide
Recommended CPE Credit: 2 credits
Recommended IACCP Credit: 2 general credits

2:30 PM - 5:00 PM

SEC Examination Workshop: An intensive, interactive clinic focusing on proven methods for successful examination outcomes

Marilyn Miles, Vice President, Investment Adviser Services, NRS
Robert Stirling, Senior Consultant, Investment Adviser Services, NRS

Being prepared for an SEC examination is more important than ever as the SEC continues to conduct more thorough and extensive exams of investment advisers. Get a jump start on preparing for your next SEC exam with a hands-on workshop. Industry experts will provide an overview of the SEC's exam process, including how the SEC conducts exams, and the frequency, risk criteria and current focus areas of the SEC examination program.

The workshop will include hands-on scenarios where instructors will guide you through preparing for an exam. As a virtual participant in this hypothetical examination, you will learn how to navigate and prepare documents in response to the SEC document request list; prepare your staff for SEC interviews; learn your rights during the exam; understand and learn how to correct common problems encountered by the SEC during exams; and deal with responding to deficiencies.

This workshop will enable you to understand the critical turning points that can determine whether an examination will be managed to a successful conclusion.

2:30 PM – 5:00 PM

Hedge Funds: Meeting the New Challenges of Regulation and Increased Transparency

Mederic Daigneault, Director of Hedge Fund Services, NRS
Adam Reback, Chief Compliance Officer, J. Goldman & Co.

Now that the contours of financial regulatory reform are emerging, a sea change in the regulation of the hedge fund industry is taking shape. What will SEC registration mean for Hedge Funds? In the wake of the financial meltdown and regulatory failures to detect fraudulent activity, hedge funds have become a top programmatic priority of the SEC Division of Enforcement. The Division is currently allocating unprecedented resources to hedge fund issues and investigations and hedge funds are clearly at risk. If Congress enacts legislation regulating the hedge fund industry, the SEC’s activity will intensify. This focus will intensify if hedge fund legislation is passed.

An all-star panel of industry experts will examine the practical aspects of registration for hedge fund managers and provide insights on reducing the odds of becoming the target of an SEC investigation. This important session will address:

• The initial and ongoing compliance costs associated with SEC registration
• Getting acclimated to the obligations and limitations of registered managers
• Putting you firm under a risk assessment microscope
• The building blocks of a “culture of compliance”
• Creating the architecture of a first-rate compliance program that meets SEC requirements
• Empowered CCO
• Code of ethics
• Insider trading
• Conflicts of interest
• Supervision
• Annual review
• Effects on performance fees
• Advertising rules
• Custody and audit requirements
• What to expect from an SEC examination and examination priorities that hedge funds need to anticipate
• Side letters
• Short sales
• Gates and redemption suspensions
• What form will registration take and possible transitional scenarios

11:15 AM- 12:30 PM

Best Practices and Survival Strategies in a Tougher Regulatory Environment

Richard Marshall, Partner, Ropes & Gray LLP
John Walsh, Associate Director/Chief Counsel (OCIE), U.S. Securities and Exchange Commission

A dialogue between two preeminent compliance experts for Investment Adviser and Broker-Dealer compliance professionals.

John Walsh and Richard Marshall will share their expert insights and perspectives on the implications for compliance and risk management in uncertain times that bring more demanding client and regulatory expectations. The speakers will offer their considered recommendations as to what you, as a compliance professional, need to do in the current environment.

This open-mic session will invite your questions and comments.

1:45 PM – 3:00 PM

CCO Liability Traps and How to Avoid Them

Robert Stirling, Senior Consultant, Investment Adviser Services, NRS
Kurt Wachholz, Managing Director, WellSpring Compliance

The last decade has changed the game for compliance officers. SEC enforcement cases imposing liability on individuals who are CCOs have raised concerns that the scope of CCO liability is being expanded to include supervisory matters. Has the evolution of the position elevated liability? Have you done a personal liability assessment lately? Is your role within your firm properly aligned within the organization? Do you know where your personal risk lies? Hear from this panel on how to undertake a pragmatic assessment your potential exposure and steps you need to take now to mitigate personal risk.

1:45 PM – 3:00 PM

FINRA Examination Hot Spots and Recent Enforcement Actions

Ish Manzanares, Director, Consulting, NRS
David Greene, Director, FINRA-District 2, LA Office

This session will identify areas in recent FINRA examinations that are resulting in deficiencies and those issues resulting in enforcement referrals. Panelists will address the latest information on changes to the FINRA exam program, examiner expectations and offer recommendations on how to prepare for an exam and address deficiencies when they occur.

1:45 PM – 3:00 PM

Hedge Fund Operations Best Practices: Dealing with Increased Volatility and Transparency

Mederic Daigneault, Director of Hedge Fund Services, NRS
Ida Wurzinger Draim, Partner, Schulte Roth & Zabel

Operational risk and the standardization of operational processes are becoming a significant issue to both hedge fund investors and administrators. Risks associated with trade processing, incorrect or untimely accounting, reconciliation, and valuation, and cash or collateral management are now much more transparent Operational processes and back office capability face increasing scrutiny by potential investors. Lack of automation, system limitations, lack of timely data, and failure to properly integrate information are red flags for both investors and regulators. Industry experts will walk you through practical solutions and best practices in areas that will include:

• Custodians, Multi-Prime and Traditional Prime Brokerage Arrangements
• Best Practices for Managing Counterparty Risk
• Outsourcing: Selecting and Managing Your Third-Party Service Providers
• Technology to Support STP Solution for Derivatives and Hedge Fund Processing: Building Your Own Platform or Relying on Your Prime Broker
• Setting Up a System of Checks and Balances for More Robust Valuation Procedures

3:20 PM – 4:35 PM

The New Paradigm: Trends in SEC Examinations and Enforcement Proceedings

Tom Biolsi, Principal, PricewaterhouseCoopers
Lori Martin, Partner, WilmerHale

Since the Madoff and other scandals, the SEC’s examination and enforcement programs have undergone significant changes and will continue to evolve. This session will focus on new and evolving changes in SEC examination methodology and priorities and also navigate and make sense of the new SEC enforcement landscape. Get information about the new types of SEC exams, including visits to new advisory firms and heightened due diligence of firms before examiners arrive. Learn about the impact of the reorganization and specialization of the Enforcement Division, administrative reforms and new policies to encourage cooperation. Recent cases and focus areas will also be examined.

3:20 PM – 4:35 PM

The Cutting Edge: Regulatory Focus on Broker-Dealer Trading Practices

David Sobel, Executive Vice President/Chief Compliance Officer, Abel/Noser Corp.
John Hewitt, Partner, McCarter & English

Market structure issues and trading practices that may compromise the transparency and fairness of the equity markets are very high on the SEC’s agenda. These include SEC proposals in connection with sponsored/direct market access, dark pools, high-frequency trading, large trader reporting and other equity market structure issues and trading practices. The panelists will discuss these issues as well as the new short sale price restrictions under Rule 201 of Regulation SHO and the curbing of manipulative short selling under amended Rule 105 of Regulation M.

9:00 AM- 9:30 AM

Professional Ethics for Compliance Professionals Part 1

Patrick Kuhse, Ethics Fellow, University of Florida, Speaking of Ethics

Patrick Kuhse will share his personal journey from successful stockbroker and entrepreneur to his involvement in a financial fraud scheme. The instructor is uniquely qualified to address key warning signs and critical thinking errors that lead to all forms of unethical behavior and criminal activity. Additionally, this session serves as Part 1 of Professional Ethics for Compliance Professionals.

9:40 AM – 10:55 AM

Lifting the Veil on Trading and Best Execution Risks

Kevin, Goodman, Associate Regional Director/Examinations, U.S. Securities and Exchange Commission
Elizabeth Knoblock, Partner, Mayer Brown LLP

Chief compliance officers and compliance departments are responsible for working effectively with the trading desk and understanding the trading process in order to implement the firm’s compliance program and performing annual reviews in support of the program. This panel on investment adviser trading will share insights on how compliance officers can gain an understanding of the firm’s trading practices, the life cycle of a trade, trade order management systems, best execution, broker selection and allocation issues. Other discussion points will include identifying conflicts of interest, recognizing trading patterns that should raise red flags, and avoiding soft dollar pitfalls.

9:40 AM – 10:55 AM

Getting It Right: Best Practices for Launching New Products

Bruce Maisel, VP & Managing Counsel, Thrivent Financial for Lutherans
Margaret Sheehan, Partner, Ashurst LLP

FINRA continues to be concerned about firms’ processes for new product development and their related marketing and sales. This session will focus on determining what constitutes a “new product,” adequate procedures for developing and approving new products, and reviewing the approval of such products. Other topics will include:

• Implementing an appropriate process to “vet” new products, particularly complex securities
• Systems and procedures to ensure salespersons are appropriately informed about new products prior to offering them for sale.
• Ensuring that supervisory policies and procedures are regularly reviewed and evaluated to ensure they adequately address the risks associated with the new products
• Training employees to understand new products so that sales presentations are driven by customer needs, rather than higher payouts
• Conducting follow-up evaluations to make certain new products are performing as expected

9:40 AM- 10:55 AM

Professional Ethics for Compliance Professionals Part 2

Patrick Kuhse, Ethics Fellow, University of Florida, Speaking of Ethics

The Professional Ethics course is offered for legal and compliance professionals within the financial community. This interactive session will give attendees an understanding of the essential elements of business ethics, ethical dilemmas in their personal and professional lives, as well as why people make the ethical decisions they do. It will provide them the tools to define, develop and control their own ethical behavior. Participants will learn about key warning signs and critical thinking errors that lead to all forms of unethical behavior and criminal activity to help prevent ethical breaches in their firm from escalating. This course offers 2 IACCP Ethics credits.

11:15 AM – 12:30 PM

Successfully Navigating the Custody Rule

Michael Caccese, Partner, K&L Gates LLP
Robert Stirling, Senior Consultant, Investment Adviser Services, NRS

This year’s revisions to the SEC Custody Rule have spawned many questions and some confusion. This panel will discuss the major revisions, clarify the ambiguities and take you through the most recent SEC guidance:

• The annual surprise examination
• Internal control reports
• Due inquiry for delivery of account statements
• Pooled Investment vehicles and privately offered securities
• Required policies and procedures
• Enhanced Form ADV disclosure
• Form ADV-E changes and the “noisy withdrawal”
• SEC guidance to Advisers and Accountants
• Best practices for the verification of client assets and reconciliation with custodian reports

11:15 AM – 12:30 PM

Practical Survival Strategies for OFAC/AML Risk Management

Diane Horn, Director, NMIS Compliance and AML Officer, Northwestern Mutual Investment Services, LLC
Ish Manzanares, Director, Consulting, NRS
Lynn Young, AML Officer, Pershing

Panelists will provide a comprehensive update on Anti-Money Laundering regulations and prudent practices for Investment Advisers and Broker-Dealers. Practical recommendations will be offered towards mitigating risks, identifying red flags, and monitoring and reporting suspicious activity. Discussion areas will include:

• AML Regulation and Enforcement Update
• Evaluating your firm’s AML risk
• OFAC: Developments/What is required?
• SARs: Latest trends related to filing, documenting and confidentiality
• SEC/SRO expectations
• Surveillance and due diligence

11:15 AM – 12:30 PM

Leveraging Technology to Support and Optimize Your Compliance Program

Jeff Abramczyk, Head of Compliance Monitoring, Pershing LLC
Steven Trigili, Chief Compliance Officer, Garden State Securities

The ever-increasing demands of the regulatory environment are often best met by implementing compliance technology solutions, but they often require an up-front investment of time and money. Learn which compliance tasks are most suited to a technology solution, how to make the case to management for funding and how to work with internal or external technology groups to ensure a successful implementation. Practical guidance and real-world case studies will be presented by an experienced panel of CCO’s and technology experts.

1:00 PM – 2:25 PM

Peer Learning Discussion Groups (PLDG)

Peer Learning Discussion Groups (PLDG) offer you a change from the conventional one-directional teaching method to that of shared learning. Join, in small groups, with fellow compliance professionals from like firms to hear what keep compliance professionals up at night and what solutions may be available. What better way to learn than from hearing the experiences and recommendations of what works from other compliance professionals, not to mention the comfort level of knowing “you’re not alone,” that others face the same challenges and concerns.

Table Leaders will sit with each group, not as speakers, but merely to facilitate discussions. While the Table Leaders may have various talking points, it will be the participants’ role to engage in and contribute to the discussions. Participants will leave these discussions better prepared to meet every day challenges as well as with new industry contacts.

2:30 PM – 3:45 PM

Conducting a Smart Annual Review presented by NRS IACCP Designees

Richard Seepersaud, Compliance Officer, TIAA-CREF
Michele Hawkins, CCO/Managing Director, Fort Washington Investment Advisors
Kurt Wachholz, Managing Director, WellSpring Compliance

You will learn how to structure a compliance risk assessment and how to map your risk assessment to the annual review and the firm’s policies and procedures. The panelists will also explore various practical and tested annual review methodologies and workable game plans for documentation and implementation of findings and recommendations.

2:30 PM – 3:45 PM

Advertising Compliance and Preparing for New FINRA Communication Rules

Ish Manzanares, Director, Consulting, NRS
Thomas Pappas, VP Dir. of Advertising Regulation Department; FINRA

FINRA issued Proposed Rule 2210 in late 2009 to set new parameters for governing public communications. The proposal would create three categories of communication: institutional, retail and correspondence. The proposal would also revise and expand approval and filing requirements. This panel will address these changes and how they will impact firms with respect to communications with the public. Panelists will also identify advertising risk areas, recent disciplinary actions and the implementation of effective supervisory procedures to avoid violations.

2:30 PM – 3:45 PM

Cracking the Code: Data Security in a High Risk Environment

John Gebauer, Managing Director, Consulting and Blue Sky Services, NRS
Mark Happe, Chief Compliance Officer, MMC Securities Corp.

Financial service firms cannot conduct business without gathering and maintaining customer information. This information is considered a firm asset that must be protected at all costs against a constantly changing and expanding continuum of threats. This session will discuss the mechanics of risk-based information security and how to ensure your firm’s policies map to its risk profile. Other areas covered will include: status report on federal and state data protection and breach notification initiatives; responding to information security breaches and vendor management best practices.

4:05 PM – 6:05 PM

New Form ADV Part 2 Here and Now: Practical Guidance on Disclosing Critical Information about Your Firm

Richard Cortese, VP Education Services, NRS
Marilyn Miles, VP IA Services, NRS
Adam Reback, CCO, J. Goldman & Co.

At its July 21, 2010, open meeting, the SEC finally approved the new Form ADV Part 2, a "plain English" narrative approach to client disclosure, which replaces the current Form ADV Part 2 "check-the-box" and Schedule F approach. The SEC first proposed this in 2000 and then re-proposed it in March 2008. Adopted rule changes will also require investment advisers to file their brochures electronically and the brochures would be available to the public on the IARD. The compliance date for the new Form ADV Part 2 will be the date of the annual update for fiscal years ending on or after December 31, 2010 (which would be the end of March 2011 for advisers with a December 31, 2010 fiscal year end). New advisers registering with the SEC after January 1, 2011, will need to use Form ADV Part 2.

Both SEC commissioners and staff emphasized the importance of meaningful, clear and useful disclosure, as well as the need for advisers to avoid legalese and boilerplate disclosures. The new form's instructions will focus disclosure on the adviser's actual practices and conflicts, as well as on practices and conflicts reasonably likely to exist. Disclosure of the material facts concerning conflicts and how the adviser deals with them will also be specifically required.

This expanded two-hour session will examine the new form’s 18 specific potential disclosure topics, including advisory business, fees and compensation, disciplinary events and brokerage practices. In addition, the panel will delve into the mechanics of the new "brochure supplement" requirement, which will be a résumé-like disclosure for each individual providing advice to a client. The session will also address:

• How to conduct a conflict of interest inventory within the framework of new Part 2
• Tips for avoiding deficiencies when disclosing conflicts of interest, compensation arrangements, fee structures, soft dollars arrangements, etc.
• The implications for public access to your firm’s brochure on the IARD

9:00 PM – 10:30 PM

Stargazing

Join fellow attendees on the Terrace Court lawn at 9pm to view the planets Jupiter, Uranus and Neptune. You will also be able to observe an exploded star now known as the Ring Nebula...it looks like a grey Cheerio in the telescope.

Astronomers, with the aid of powerful telescopes, will assist you in observing many star clusters, colorful double stars and the famous Andromeda Galaxy (more than 2 million light-years away.) These stargazers will point out the constellations of Pegasus, Andromeda, Cassiopeia, Perseus, Capricorn, Aquarius, Hercules and many more.

It will be a great night full of wonderful objects to explore and many stories of the night sky.

4:05 PM – 5:20 PM

Sending the Right Message: Practical Insights for Supervision of Registered Representatives

Marianne Czernin, Executive Vice President/Director, Broker-Dealer Services, NRS
Andrea Golis, CCO/Retail IA & BD, Thrivent Financial for Lutherans

With the regulatory scrutiny getting more intense every day, broker-dealers can’t assume their reps are not up to something which might harm the firm.

Hard economic times impact registered reps just like anyone else, which may lead to their cutting corners, bending rules or being outright dishonest to make more money.

What supervisory practices should a broker-dealer put into place, to best take advantage of limited resources? How does the broker-dealer ensure that it truly “knows its reps” and has a handle on what they’re up to? Firms can’t afford to let one rouge representative’s actions get them fined or worse. This session will include the routine supervisory policies that should be in effect, and will discuss some that may not be routine, but are effective.

4:05 PM – 5:20 PM

ERISA Update: Current Developments Affecting Fiduciaries

Jennifer Eller, Principal, Groom Law Group, Chartered
Mark Eide, CCO, Woodbury Financial Services

Learn about recent and anticipated changes in the regulation of employee benefit plans and plan service providers. Financial reform legislation, fee disclosure requirements, ERISA fiduciary status of investment advisers and brokers and new prohibited transaction exemption requirements will all be discussed in this informative, interactive session. For instance, as the Department of Labor prepares to regulate more investment adviser activity under ERISA's stringent fiduciary standards, advisers should be aware of the developments and should be thinking about how to establish business models that comply with the legal requirements of today and tomorrow. In addition, courts, the Labor Department and the U.S. Congress are all addressing fee disclosure to ERISA plans and participants. Where will the final requirements take us, and how can advisers prepare, and help their clients do the same?

ERISA experts will discuss these topical issues and bring you the latest developments, highlighting the areas most relevant for advisers and brokers.

9:40 AM – 10:45 AM

Operational Due Diligence: Adapting to Heightened Expectations of Investors and Regulators

David Lui, Chief Compliance Officer, FAF Advisors/First American Funds
Tim Simons, Partner, Ashland Partners & Company LLC

Whether you select or recommend investment managers for a Fund of Funds, within wrap fee programs, as a family office or within a separate platform, the SEC expects documented due diligence practices. SEC enforcement cases in the aftermath of the Madoff fiasco have driven home the point that firms’ due diligence practices should track with client disclosures and must aggressively respond to red flags. How should investment managers be evaluated from a due diligence/risk management perspective? What level of specificity is required in key areas of investment management, valuation, best execution, privacy, disaster recovery and other business and compliance areas? These questions and the following points will be covered by in this timely session:

• Elements of defensible due diligence for alternative investments, outside managers and service providers
• Effective on-site visits and the questions you need to ask
• Operational, risk management and compliance reviews
• Assessing firm management and organization
• Background checks
• Due diligence procedures to detect potential fraud
• Ongoing due diligence

9:40 AM – 10:45 AM

The Future of Arbitration: FINRA Initiatives and New SEC Oversight

David Sobel, Executive Vice President/Chief Compliance Officer, Abel/Noser Corp.
Dennis Stubblefield, Law Offices of Dennis A. Stubblefield

The landscape of securities arbitration is changing on several fronts. Congress may give the SEC authority to limit or restrict mandatory securities arbitration. Recent and proposed changes in FINRA Dispute Resolution’s arbitration rules and practices will be examined. Possible changes in the discovery process and the impact of FINRA rule changes on motions to dismiss and expungements will also be on the agenda. The panelists will provide updates on arbitration case law.

9:40 AM – 10:45 AM

What Advisers Need to Know about Doing Business in the UK and Canada

George Arnett, Managing Director and Senior Managing Counsel, Pershing, LLC
Jon Boustany, Deputy General Counsel, Managing Dir., Intl. Legal, Legg Mason

Dramatic regulatory changes are taking place in the United Kingdom and in Canada. The disbanding of the FSA will have far-reaching implications for advisers who currently have UK clients and who want to expand their international client base to include UK residents. Canada’s adoption of a nation-wide registration regime promises to make doing business in Canada much more simple and straightforward. A seasoned panel of experts will break down these changes and help you learn how to navigate these changing regulatory systems.

11:00 AM – 12:15 PM

Staying Ahead of the Curve: Social Media Compliance

Mederic Daigneault, Director of Hedge Fund Services, NRS
Deb Well, Director of E-Business, Harbor Capital Advisors, Inc.

Friends and profiles, professional networking, micro-blogging, Facebook, LinkedIn and Twitter must now be addressed in your compliance program. Are your employees using firm premises and equipment to communicate with clients in the social networking environment? Is e-marketing being conducted? What about the confidentiality of firm and client information? This panel will bring you up to speed on these communication portals, the risks they pose and regulators’ expectations regarding oversight and supervision. The panel will analyze FINRA guidance on how broker-dealers should handle communications recordkeeping and supervision of static and interactive online communications.

11:00 AM – 12:15 PM

Understanding the Changing OTC Derivatives Marketplace

Mark Perlow, Partner, K&L Gates
David Lui, CCO, FAF Advisors/First American Funds

The recently enacted U.S. financial reform legislation will create a sea change in the over-the-counter derivatives market. Much of this market will for the first time be brought into the public through requirements that standardized trades be executed on exchanges and centrally cleared and that transactions remaining in the OTC market be subject to higher dealer capital charges and new reporting and recordkeeping requirements. This panel will help compliance officers learn about how the new transparency focuses attention on best execution requirements and will provide insights on meeting these requirements. The panel also will explain the new margin requirements for centrally cleared transactions and how these impact investment advisers’ custodial and recordkeeping responsibilities. The panel will discuss the special requirements for “Major Swaps Participants” and tips for compliance. Finally, the panel will analyze recent SEC and CFTC initiatives and enforcement actions focused on abuses in the derivatives markets and will suggest ways to avoid regulatory scrutiny.