Course Description:
Outsourcing certain aspects of an investment adviser’s business has many benefits, from financial to operational efficiencies. However, at the same time, outsourcing imposes additional fiduciary, supervisory, and operational considerations that may offset the savings gained by outsourcing.
In October 2022, the SEC proposed a new rule about outsourcing “covered functions” to third-party vendors (the Outsourcing Rule) that would require advisers to implement and document their due diligence process for initial approval and continued use of outsourced services and advisory functions. Recognizing that what works for one firm may not be sufficient for another, the SEC has identified the factors they will use in determining adequacy of a firm’s vendor due diligence process. Accordingly, presenters will review not only the proposed Outsourcing Rule but also broader requirements for vendor management. This session will explore the key concepts of the proposed rule, due diligence considerations, approaches to due diligence practices, and vendor impact on an adviser’s business and clients.
Learning Objectives:
After attending this course, attendees should be able to:
- Understand the key concepts and potential of the proposed SEC Outsourcing Rule
- Learn practical approaches to comply with the due diligence and ongoing review requirements
- Obtain take away tips for conducting compliant due diligence
For Whom: Chief Compliance Officers, Management Compliance Staff at all levels, Legal Counsel, Trading Personnel Persons involved with monitoring client portfolios
Suggested Skill Level: Intermediate
Instructional Method: Group Internet-Based
Pre-requisites for participation: No prerequisites are required. However, attendees can benefit by reviewing the Investment Advisers Act of 1940 to become familiar with the structure and terms.
Advance Preparation: None
Continuing Education Credits
COMPLY Continuing Education Guide
Recommended IACCP® CE Credit: 2
Recommended CPE Credit: 2 in the Regulatory Ethics field of study
Recommended CA MCLE Credit: 2