'What to Expect from an Investment Adviser Exam'

Glenn R. Skreppen – Director, Bureau of Securities Compliance and Examinations, 
PA Department of Banking and Securities

During this session, state regulators will describe steps you can take to prepare for an Investment Adviser Exam, as well as what you can expect during an exam. Discussion will include topics that are of a heightened alert to securities examiners. This presentation is designed to help firms understand regulatory and exam issues to help ensure that they are operating in compliance with Pennsylvania law. You will leave this discussion with the ability to better assess your regulatory compliance strengths and weaknesses.

'The Perils and Pitfalls of Custody'

Scott A. Lane – Senior Deputy Chief Counsel, PA Department of Banking and Securities
Eric Pistilli – Chief of Securities Licensing, PA Department of Banking and Securities

This presentation will address the five most common scenarios the Department of Banking and Securities has identified in which RIA firms may be deemed to have custody of clients’ funds. You will be able to interact with experts on the complex topic of custody in the RIA industry. The presentation will touch on the intricacies of these scenarios and identify safeguards that could be put in place to avoid being deemed an RIA with custody. It will also cover the audit and financial requirements that must be put in place once a firm has been deemed to have custody.

Panel Discussion: 'Hot Topics in Compliance'

Stefanie J. Hamilton – Deputy Chief Counsel, PA Department of Banking and Securities
Carolyn Mendelson – Assistant Counsel, PA Department of Banking and Securities
Nancy L. Heffner, CRCP – Director of Compliance, Lincoln Investment

This panel will discuss “hot topics” that are of particular concern to both regulators and compliance officers at broker-dealers and investment advisory firms. Among the topics this panel will discuss:

• Recent enforcement actions taken by the Department of Banking and Securities and the importance of a firm’s written supervisory procedures
  
• Alternative investments, including structured products and non-traded real estate investment trusts, and the suitability of these products for investors; 
  
• Recent developments in the protection of senior investors: FINRA’s new Rule 2165, Financial Exploitation of Specified Adults, FINRA’s Rule 4512, Customer Account Information, and the Senior $afe program; and
• The importance of cybersecurity for your firm and your clients.  

'Fiduciary Duty in the Securities Industry'

A. Valerie Mirko – General Counsel, North American Securities Administrators Association (NASAA)

One of the most important topics in the investment profession concerns fiduciary roles and duties. This presentation will address the difference between a broker-dealer’s obligation to customers regarding selection of investment vehicle and suitability, and an investment adviser’s obligation to clients regarding investment advice. The presentation will also discuss the differences among the roles of other intermediaries in the securities industry that communicate with customers, consumers, and clients. Participants will also learn about the pitfalls of certain communications regarding Blue Sky and federal securities laws.

'Web CRD & IARD – Everything You Wanted to Know But were Afraid to Ask'

Jeffrey Weinstein – Senior Director, Regulator Services, FINRA 

FINRA Registration and Disclosure staff will provide updates regarding recent enhancements and new features available in Web CRD, IARD, E-Bill, the Financial Professionals Gateway, and BrokerCheck systems. You will receive an overview and status update concerning FINRA’s proposed changes to the registered representative examination/qualification program. The presentation will also discuss recently adopted SEC Form ADV changes and provide timely information about IARD system functionality that was introduced to accommodate “umbrella registration” and the new Schedule R. You will learn how to better navigate the Web CRD & IARD filing process, as well as FINRA’s 2018 Annual Renewal Program. You will be provided with the “Top Ten List” of questions that are most commonly asked of FINRA Gateway Call Center representatives. 

'Top Industrywide Deficiencies in Investment Adviser Exams'

Michael Huggs – Director, Securities Division, Mississippi Secretary of State

During the first half of 2017, state securities regulators across the country conducted investment adviser examinations in a coordinated effort led by Michael Huggs to determine the top deficiencies that plague advisers. The North American Securities Administrators Association (NASAA) has compiled those results. You will be taken on an informative tour of these exam findings and be among the first in the country to view the results of the “2017 NASAA Coordinated Investment Adviser Exam Report.” This presentation will also offer the top 10 best practices that investment advisers should consider to correct and/or avoid these deficiencies.