Developing and Maintaining a Modern Compliance Program

September 16, 2015

When the SEC adopted Rules 38a-1 under the Investment Company Act of 1940 (Investment Company Act) and 206(4)-7 under the Investment Advisers Act of 1940 (Advisers Act) in 2003, which required registered funds and registered advisers to adopt compliance policies and procedures, William Donaldson had just become SEC Chairman in the wake of the Enron and WorldCom scandals and the fund industry was reeling from the market timing and late trading scandals uncovered by New York State Attorney General Elliot Spitzer. Pursuant to these rules, funds and advisers were required to adopt “risk-based” compliance policies and procedures that are “reasonably designed to comply with federal securities laws.”

Continue reading "Developing and Maintaining a Modern Compliance Program."