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In the Spotlight

Transitions Magazine

Regulatory Update 9. Train your Staff. Talk to them, or have someone come in and talk to them, about the issues surrounding registration, why you have adopted this manual and this code. Get staff involved in the process and fully understand the obligations, for example receiving shares as a gift or inheritance. Hold annual training sessions and keep documentation so that you can easily demonstrate to the SEC that you are holding these training sessions. 10. Be Ready to Prove it! We recommend that firms not only adopt a reporting process and a workflow monitoring process, but also get ready for the auditor to walk through the door. Run through an audit checklist on a periodic basis, every six months or once a year, as though you were been audited. Tell your own story – how would you describe to an auditor what your firm does, what are your procedures, how do you comply with certain requirements such as trade allocations, personal trading, marketing reviews. By preparing a detailed audit process memo, a client can be 60% to 65% prepared in the event of an audit.

Bill also represented both registered and unregistered investment advisers while assisting clients in addressing CFTC-related matters. He handled the listing of private investment funds on both U.S. and non-U.S. exchanges, advising clients about ongoing SEC filing requirements, as well as providing overall securities, corporate and tax advice to the firm’s clients. Bill received a JD degree from Cornell Law School in 1995 and a BA from Boston University in 1991 and is certified as an Investment Adviser Certified Compliance Professional (IACCPsm) by National Regulatory Service’s Center for Compliance Professionals. He currently serves as Chairman of the Board of Managers of the Alternative Investment Compliance Association. Please visit http://www.hedgeop.com for more information.

Finally, compliance is a lot of little tasks that you need to stay on top of; if you stay on top of them as they occur they don’t turn into big problems. uuu

William G. Mulligan, Jr. is the Managing Partner | CEO of HedgeOp Compliance. Prior to founding HedgeOp Compliance, LLC on January 1, 2001, Bill was an associate in the Investment Management Group of Seward & Kissel LLP for approximately six years. At S&K, he specialized in the formation and structuring of private investment funds and private equity products. www.transitions-mag.com

September 2010

29

Profile for Financial Forum Inc.

Transitions Magazine - September 2010  

Business Management for Independent FInancial Advisors

Transitions Magazine - September 2010  

Business Management for Independent FInancial Advisors

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