Compliance Solutions for Investment Advisers

An Ounce of (Compliance) Prevention

The enforcement staff gives credit to registrants that demonstrate effective compliance programs and a genuine commitment to ethical principles.  Advisers should focus on persuading the enforcement staff of the quality and depth of a firm’s compliance culture and its record of ethical conduct at the outset of an investigation, rather than discussing compliance programs during settlement negotiations in the context of remediation undertaken after violations occur.  The SEC staff will give much more credit to registrants that demonstrate that misconduct is an outlier in a highly ethical and compliance-driven culture rather than a remedial step after investors have suffered losses.

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