NSCP Southern Regional Membership Meeting

February 22, 2010

Meeting Location
AMA Executive Conference Center
1170 Peachtree St NE
Atlanta, GA

Lodging Choices

Marriott Suites Midtown
35 14th Street NE, Atlanta, GA
$139 /night. (404) 876-8888.
Ask for the NSCP room block.

"W Atlanta" West Atlanta Midtown
188 14th St. NE, Atlanta, GA
$149 /night. (404) 892-6000

Four Seasons
75 14th St. NE, Atlanta, GA
$210 /night (moderate), $240 /night (superior). (404) 881-9898

FEE SCHEDULE - DATE OF ACTUAL RECEIPT BY NSCP GOVERNS RATES CHARGED.

*Non-member from the same firm.

Discount for additional people from the same firm
In order to help compliance departments educate their compliance staff, NSCP is offering a 20% registration fee discount for each additional attendee from within the same firm. Look for the discount code in the first registered attendee’s confirmation e-mail. If you have any questions, please e-mail Liza Wentworth at lwentworth@nscp.org.

Sign up and pay online

Meeting Host
Financial Tracking, LLC

Meeting Sponsors
ACA Compliance Group (ACA)
Ashland Partners
Bingham McCutchen LLP
Compliance11
K&L Gates LLP
Renaissance Regulatory Services, Inc. (RRS)

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

• Changes in the regulatory landscape: new rules and focuses
• Exam priorities, deficiencies, and enforcement
• Internal controls for compliance officers to consider
• Q & A  (NSCP to solicit questions from registered attendees prior to the meeting)

James L. Carley, SEC Atlanta Regional Office*
Scott De Army, FINRA Atlanta District Office*
Michael K. Wolensky, Schiff Hardin LLP (moderator)

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

(a) BD – DETECTING AND PREVENTING FRAUD

• How to protect against misappropriation, insider trading and front running
• Detecting market manipulation activities and rumor mongering
• Identity theft and the new FTC red flag rule
• Fraud prevention techniques and education on how to recognize, react and report fraud (keys to prevention and detection)

Theodore J. Sawicki, Alston & Bird LLP
Patricia M.Harrison, Simmons & Company International

(b) IA – DETECTING AND PREVENTING FRAUD

• New client due diligence, expectations and regulatory requirements
• Portfolio management and supervisory reviews
• Protecting against misappropriation, insider trading and front running
• Key employee bells and whistles and AML management

Katherine S. Addleman, Haynes and Boone, LLP
Deborah A. Lamb, CSCP, McKinley Capital Management, LLC
Tracy K. Webb, CSCP, Office of the New York State Comptroller

(c) GI - PRIMER ON COMPLEX FINANCIAL INSTRUMENTS

• Vetting products
• The latest new products
• The risks of these products
• Ongoing monitoring of products

Clifford J. Alexander, K&L Gates LLP
Eric J. Slawin, SunTrust Robinson Humphrey, Inc.

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

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

(a) BD – ADDRESSING NEW ISSUES IN FINRA, SEC AND STATE EXAMINATIONS AND ENFORCEMENT PROCEEDINGS

• What processes should you have in place to address top exam deficiencies, changes in examination and exam techniques
• How are firms addressing the latest new rules
• What is being referred to Enforcement – the new landscape
• Enforcement proceedings and the acceptance, waiver and consent process – who, what, when and how

Thomas K.Potter, III, Burr & Forman, LLP
Henry Sanchez, Jr., LPL Financial

(b) IA – ADDRESSING NEW ISSUES IN SEC AND STATE EXAMINATIONS AND ENFORCEMENT PROCEEDINGS

• What processes should you have in place to address top exam deficiencies and changes in examination and exam techniques
• How are firms addressing the latest new rules
• What is being referred to Enforcement – the new landscape
• Enforcement proceedings and the settlement process – who, what, when and how

Kenneth I. Daniels, Compliance & Litigation Consulting
Patricia E. Flynn, CSCP, INTECH

(c) HF – COMPLIANCE AND RISK MANAGEMENT

• Risk evaluation of referral, sub-advisory, solicitor relationships: BDs, RIAs and finders, prime brokers, administrators, custodians
• Preparing marketing and performance information and the difference between offering disclosures and marketing disclosures
• Implementing and monitoring trading and valuation policies
• Registration and regulatory reform

Caroline Austin, FirstSouthwest
Rebecca O’Brien Radford, K&L Gates LLP

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

(a) BD —  CONDUCTING INTERNAL COMPLIANCE REVIEWS

• Developing effective WSPs and demonstrating a stellar review process
• Examples of transaction, periodic and forensic testing
• NEW case study: How to identify gaps within your compliance program: focus on remote locations, outside business activities and new products (compliance testing that works)
• Documenting the sampling process and building a plan that leads to CEO Certification

Glenn Elmblad, Raymond James
Carrie Wisniewski, CSCP, B/D Compliance Associates, Inc.

(b) IA — CONDUCTING INTERNALCOMPLIANCE REVIEWS

• Developing effective policies and procedures and demonstrating a stellar review process
• Examples of transactional, periodic and forensic testing
• NEW case study: How to identify gaps within your compliance program: focus on custody, pay to play arrangements with affiliates and beyond, and due diligence of new products and service provider (compliance testing that works)
• Documenting the sampling process and building a plan that leads to an annual review report

Elizabeth M. Knoblock , Mayer Brown LLP
Susan Moore-Wester, Hansberger Global Investors, Inc

(c) HF – MANAGING CONFLICTS OF INTEREST

• Valuation, allocation, high water marks and performance fees
• Risk evaluation of third party arrangements: auditors, prime brokers, custodians, administrators and fund of fund manager relationships
• Side letter agreements, side by side trading
• NEW case study:  How to provide effective, appropriate disclosures and consistent conduct (focus on offering memorandums, sales efforts and promotional materials for hedge funds)

Ethan H. Cohen, Schiff Hardin LLP
Martha J. Matthews, FISCO LLC

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

(a) BD - MONITORING SUPERVISORY CONTROLS – Hear direct from a Branch Manager

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

Scott Sherman, Baker, Donelson, Bearman, Caldwell & Berkowitz, PC
Kenneth Bell, ING Advisors Network

(b) IA - COMPLIANCE AND RISK MANAGEMENT – Hear direct from Risk Management

• How to identify and deal with conflicts of interest
• Enhancing current disclosures – where and how
• Evaluation of supervisory controls and internal procedures
• Addressing the regulators’ and firm’s foremost concerns

David C. Prince, Stephens Investment Management Group, LLC
Timothy M. Simons, CSCP, Ashland Partners & Company LLP

(c) GI – INFORMATION SECURITY POLICIES AND PROCEDURES INCLUDING ELECTRONIC COMMUNICATIONS  - Hear direct from IT

• Components of a comprehensive safeguards program and policy templates
• New and emerging technologies and their challenges (iPhones, internet usage and beyond)
• Best practices and supervision solutions for social networking sites (Twitter, Linked-In, Facebook)
• Data encryption (laptops, PDAs, removable storage devices) and network security (physical security and firewalls)

Paul Butticaz, SunTrust Robinson Humphrey
Harry Chaffee, CSCP, Renaissance Regulatory Services, Inc.
Krien VerBerkmoes III, VALIC Financial Advisors, Inc

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