This session will focus on OCIE’s 2019 examination priorities against a risk-based approach to: promoting compliance, preventing fraud, identifying and monitoring risk, and informing policy. Best practices in highlighted sections will be covered for firms of various sizes. Attendees will leave with ideas and best practices to implement for their firm.
Advanced Preparation: None
Pre-requisites for participation: No prerequisites are required
• Investigate fees and other expenses: disclosure of costs of investing, financial incentives; participatory and affiliated relationships; share class justification, and conflicts of interest.
• Review portfolio management practices both for fair trade allocation and the actual investment process, including recommendations and product suitability, risky new investment tolerance and disclosure, and conflicts of interest.
• Focus on Mutual Funds and Exchange Traded Funds (ETFs): proper investment risk disclosure; adequate oversight procedures for the board; sufficiently experienced advisers managing funds and multi-fund investments; and, addressing conflicts of interest.
• Monitor and expand cybersecurity management: identify and manage cybersecurity, governance and risk assessment, data loss controls, vendor management, training and testing.