SEC 2021 EXAMINATION PRIORITIES

One day after the SEC Division of Examinations published its 2021 Examination Priorities, Division Director Peter Driscoll explained to IAA General Counsel Gail Bernstein what his examiners will be looking for, and why there's an enhanced focus on climate risks and ESG-related issues. Their virtual conversation took place at the 2021 IAA Compliance Conference.

HOT TOPICS FROM INSIDE THE BELTWAY

At the 2021 Investment Adviser Association Compliance Conference, a panel featuring IAA President & CEO Karen Barr, IAA Vice President for Government Relations, Harris Associates Partner and General Counsel Rana Wright, and Mindset DC Partner Langston Emerson explored what's happening on Capitol Hill, the new Biden Administration and noteworthy regulatory developments.

INVESTMENT MANAGEMENT, ECONOMIC AND RISK ANALYSIS: A CONVERSATION WITH SEC OFFICIALS

Rule implementation is a priority for the SEC's Division of Investment Management, whose Acting Director Sarah ten Siethoff spoke at the 2021 IAA Compliance Conference. Siethoff said her staff is focused on implementing the many new rules that were adopted last year, while pursuing new rulemakings - including money market reforms and updating the Custody Rule. Joining her was Dr. Alexander Schiller, Assistant Director of the Office of Asset Management in the SEC's Division of Economic and Risk Analysis.

DIVERSITY, EQUITY, AND INCLUSION IN THE ASSET MANAGEMENT INDUSTRY

At the IAA’s 2021 Compliance Conference, a panel of IAA members that included Brown Capital Management Chief Compliance Officer Robert E. Burks, Jr., Diamond Hill Capital Management General Counsel Carlotta King, and Virtus Managing Partner Hope L. Newsome examined ways to make the industry more diverse, equitable and inclusive.

DIVERSITY, EQUITY, & INCLUSION: AN INVESTMENT INDUSTRY IMPERATIVE

The historic lack of diversity in the investment industry is certainly no secret. Recent events in our country have added even more urgency to the issue and have inspired more candid dialogue on how best to rectify it. The work of these industry leaders shows their careers-long dedication to the values of diversity, equity, and inclusion – and they shared their experiences and thoughts about the path forward at the IAA’s 2020 Leadership Week virtual conference. IAA Today’s coverage of their remarks is available here.

GETTING PROACTIVE WITH CLIENTS ON ESG

ESG and sustainable investing strategies are experiencing strong growth both in asset flows and investor interest. For advisers, this presents an excellent opportunity to engage with clients and lead the discussion on values-based investing.  Industry experts discuss the outlook for sustainable investing in 2021, how to discuss ESG with clients, and how to build portfolios and select funds and managers. This is a presentation of the IAA’s Active Managers Council.

TRADING & BEST EXECUTION SUMMIT KEYNOTE WITH SEC COMMISSIONER HESTER PEIRCE

The impact of COVID-19 on the markets – and the SEC’s response – highlighted SEC Commissioner Hester Peirce’s remarks in her keynote conversation with IAA General Counsel Gail Bernstein. Peirce also addressed the SEC’s work on equity market structure and implications for the buyside – and expressed concerns about liquidity in the fixed income and credit markets during the pandemic.

TRADING & BEST EXECUTION SUMMIT: SEC TRADING AND MARKETS DIRECTOR BRETT READFEARN

In his “Fireside Chat” with Capital Markets Strategies President Ari Burstein, Brett Redfearn – Director of the SEC’s Division of Trading and Markets – focused his remarks on the importance of addressing conflicts, increasing the public’s access to data, and fostering competition while ensuring protection of investors.

WHAT’S A FIDUCIARY?

Fiduciary is the most important word that retail investors don’t understand. Here’s how average investors answered the question: “What’s a Fiduciary?”

THE POWER OF ACTIVE MANAGEMENT

It’s not active vs. passive… it’s active and passive. These experts – Finance Professor Russ Wermers of the University of Maryland’s Robert H. Smith School of Business, Portfolio Manager Anne Lester of J.P. Morgan Asset Management and SouthernSun Asset Management Analyst and Principal Michael Cross – explain why active management is crucial for investors and the markets.

COMMISSIONER LEE ON THE SEC ADVERTISING RULE AND PROXY PROPOSALS

In her keynote address at the 2020 IAA Compliance Conference in March, SEC Commissioner Allison Herren Lee said the agency’s Advertising Rule modernization proposal may be “too vague” – and she harshly criticized the SEC’s proxy reform proposals as “the opposite of investor empowerment.”

THE FUTURE OF OUR PROFESSION

What will your business look like in five to 10 years? At the Investment Adviser Association 2020 Compliance Conference, this expert panel gave attendees a glimpse of the kinds of issues that CEOs and COOs are wrestling with and offered some valuable insights that can help you think ahead.