Speakers:

Session 1:  Managing Risk When Outsourcing Your Firm’s Key Functions

As the financial services industry and the regulatory environment grow more and more complex, firms

are increasingly using third-party vendors to perform business-critical roles to fulfill their regulatory requirements. At the same time, regulators have been monitoring registrants who outsource key functions. This session will provide an overview of the current regulatory landscape, discuss industry trends in outsourcing, and provide practical guidance on how to identify and manage the risks that may arise from outsourcing a particular business activity or compliance function.

Learning Objectives:

• Understand the current obligations of firms who outsource key functions, and the additional restrictions and obligations contained in proposed rules 206(4)-11 (IAs) and RN 21-29 (BDs)

• Understand how the SEC defines service providers, the proposed rule, and its six specific elements

• Explore the services and functions that are commonly being outsourced; and how RIAs and BDs are leveraging third-party vendors

• Learn about the types of risks posed to firms, clients, and investors by outsourcing certain business activity and compliance functions

• Develop strategies, policies and procedures for monitoring and managing outsourced risk

Session 2:  Tactical Steps to Protect the CCO from Liability

With the ever-increasing pace of new regulations, products, and technological advances, in addition to the lingering effects of the global pandemic and instability of the financial markets, the job of the compliance officer has never been more complex.   The recent regulatory actions focusing on Chief Compliance Officer liability have only served to amplify the difficulty of the role.  The panelists will review some of the “lessons learned” from recent enforcement actions and suggest common sense, tactical ways to help CCOs perform their job effectively, take steps to avoid personal liability, and advance compliance responsibility across the organization.

Learning Objectives: 

• Review recent CCO liability enforcement actions, New York State Department of Financial Services (NYFSD) and NSCP Frameworks for Compliance Officer Liability, and DOJ Compliance program certification requirements

• Evaluate ways that can best evidence the CCO’s oversight of compliance and steps to mitigate circumvention of the compliance program through use of case studies which will include a discussion of supervision and compliance officer responsibilities

• Discuss practical ways compliance officers can strengthen a culture of compliance among business partners at all levels within an organization

• Determine when and if a compliance officer must step out of the CCO role

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