10b. ALL – Non-Traditional Alternative Investments (Advanced)
This session will explore compliance practices for firms that are looking beyond typical common stock and U.S. government securities investments for better portfolio return opportunities. These may include hedge funds, private equity, financial derivatives, REITS, Cryptocurrency, foreign currency, opportunity zone funds, high risk bonds and hybrids.
- Implement adequate higher risk level policies, procedures, and controls governing firm strategies and products that may be offered to clients including those relating to enhanced due diligence and suitability
- Work with senior investment to ensure that the new security type can be adequately managed and that personnel are well trained across all departments
- Safeguard client expectations by affirming that risks are adequately disclosed in firm documents, marketing brochures and client related materials
- Confirm that testing methods and results meet enhanced investment risk standards.