March 16, 2009
Sheraton Los Angeles Downtown Hotel
711 South Hope Street
Los Angeles, CA 90017

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Meeting Sponsors
ACA Compliance Group
Bingham McCutchen LLP
K&L Gates LLP

Except where noted, all NSCP workshops are closed to the Regulators and members of the press.

General Session (8:30 am - 10:00 am)

Dialogue With Area Regulators
Open to Regulators and members of the press

• Current topics
• Exam deficiencies and enforcement priorities
• Regulatory landscape and SRO rule consolidation
• Suitability and the aging investor: retirement and senior concerns
• Credit crisis and implications on regulations

David A. Greene, FINRA
Michelle L. Jacko, Core Compliance & Legal Services, Inc
Rosalind R. Tyson, SEC Pacific Region *

WORKSHOP SESSION I (10:15 am - 11:30 am)

(a) BD -- Supervisory Responsibilities

• Delegation of supervisory duties
• Supervision of branch offices and producing managers
• Supervisory red flag review: follow-up and documentation
• Supervisory controls and certification

Sylvia M. Scott, Freeman, Freeman & Smiley, LLP
Elizabeth M. Herbst, UBS Financial Services Inc.

(b) IA -- Compliance And Risk Management Issues

• A systematic practical approach to identifying and dealing with conflicts
• Enhancing current disclosures – where and how
• Evaluation of supervisory controls
• Current regulatory hot topics

Kerry E. Cunningham, ING Advisors Network
David A. Hearth, Paul, Hastings, Janofsky & Walker LLP

(c) HF -- Hedge Fund Compliance And Risk Management Issues

• Post-Goldstein considerations regarding the “client”
• Implementing trade policies and monitoring trade practices 
• Offering disclosures versus marketing disclosures
• Valuation policies and controls – determining fair value in volatile markets
• Establishing third-party arrangements: administrators, custodians, prime brokers, sub-advisors 
• Short-selling controls: Form SH, Bear raids, market manipulation

David W. Porteous, Levenfeld Pearlstein, LLC
Charles H. Field, Nicholas-Applegate Capital Management

LUNCH (11:30 am - 12:45 pm)

WORKSHOP SESSION II (12:45 am - 2:00 pm)

(a) GI -- Ethics For Compliance Officers**

• Your firm’s Code of Ethics – personal trading issues
• Escalation of unethical or non-compliant behavior
• Professional dealings with customers, intermediaries and peers
• Compensation and employment considerations

Susan L. Hoffman, Bingham McCutchen, LLP
Charles R. Lowry, UBS Financial Services Inc.

(b) GI -- Sampling Techniques And Compliance Testing**

• Practical approaches to test the firm’s internal controls – what is reasonable
• Acceptable standards regarding sampling methods
• Documenting the process and building a plan that leads to the CEO Certification
• Forensic testing: when will you need to do it? Daily or when bad things happen?

Craig R. Watanabe, NRP Financial, Inc.
Krista Zipfel, Advisor Solutions Group, Inc.

WORKSHOP SESSION III (2:15 pm - 3:30 pm)

(a) BD -- Rule 3012 Reviews: What Finra Is Looking For

• The rulebook consolidation process - how to use it in your 3012 review and what are some of the rule changes
• The most effective procedures that may impress examiners
• How to demonstrate and document that you have done a stellar review
• Examples of compliance testing at small firms and large firms
• Key documents you should be able to produce

Brian T. Applegate, ING Direct/Sharebuilder Securities
Mary E. Cobb, M.E. Cobb Consulting

(b) IA -- Compliance Rule Audits: What The SEC Is Looking For

• Top 5 exam deficiencies
• The most effective procedures that impress examiners
• How to demonstrate that you’ve accomplished a stellar risk assessment
• Examples of transactions and forensic testing
• Key documents you should be able to produce

Laurie A. Dee,  Paul, Hastings, Janofsky & Walker LLP
Jean-Paul Migrditchian, Matthews International Capital Management LLC

(c) GI -- Privacy Considerations: Regulation SP Amendments**

• Proposed Regulation SP amendments
• Information security safeguards and procedures
• Identifying, investigating and reporting on identity theft and privacy issues
• On-line account intrusions

Kerry E. Cunningham, ING Advisors Network
Angela M. Mitchell, Capital Research and Management Group

WORKSHOP SESSION IV (3:45 pm - 5:00 pm)

(a) BD -- Considerations For Enhancing The Compliance Function

• Structure for a compliance department (small and large firms)
• Components of an effective compliance program
• Robust testing and independent reporting
• Recruiting and compensation
• Building an effective compliance training program

Mark H. Nicholas, ING Americas Legal Services
Diane P. Novak, DPN Consulting Services

(b) IA — Considerations For Enhancing The Compliance Function

• Structure for a compliance department (small and large firms)
• Components of an effective compliance program
• Robust testing and independent reporting
• Recruiting and compensation
• Building an effective compliance training program

Alexandra C. Sparling, K&L Gates LLP
Craig R. Watanabe, NRP Financial, Inc.

(c) HF — Managing Non-Public Information

• Selective disclosure practices: preventing the creation and dissemination of rumors
• Product challenges: PIPES, distressed debt and bank loans
• Insider trading policies
• Side-by-side management for different strategies
• Big-boy letters

Mark D. Perlow, K&L Gates LLP
Helane L. Morrison, Hall Capital Partners LLC

*Invited and pursuing authorization
**GI - General Interest; both IA and BD sides of the issue will be covered