Two Persistent Compliance Challenges: Insider Trading and Advisory Contracts

Jeff Blumberg and Jim Lundy are instructing on “Two Persistent Compliance Challenges: Insider Trading and Advisory Contracts” for the Investment Adviser Association’s (IAA) Investment Adviser Certified Compliance Professional® (IACCP®) Program. Jim and Jeff’s training covers:

• Insider trading, including introduction to Rule 204A-1 — Investment Advisers Code of Ethics
  • Insider trading law and regulation
  • Misuse of Material, Nonpublic Information (MNPI)
  • Primary elements including materiality, nonpublic information, violation of duty, tipper/tippee liability and enforcement, personal benefit, and scienter or “wrongful intent”
  • Rule 10b5-1 (1934 Act): Trading “on the basis of” MNPI
  • SEC enforcement actions
  • Material nonpublic information at the firm
  • Prevention of misuse of nonpublic information
  • Section 204A policies, procedures, enforcement and training
  • Rule 204A-1 code of ethics, including who is covered, elements, holdings reports, transactions reports, reportable securities, reporting exceptions, additional requirements and enforcement actions
  • Failure to supervise, including pitfalls, vigilance and enforcement actions
• Section 205 — Investment Advisory Contracts
  • Definition of investment advisory contracts
  • Prohibition
  • Performance fee exemption
  • Clauses including hedge clauses and ERISA clauses