August 2016

SEC discusses firm culture, the implications of pay-to-play rules, and much more in the August edition of Fund Forum

3 min

This issue of Venable's Fund Forum provides further discussion on (i) firm culture, (ii) important implications for investment advisors and others subject to the pay-to-play rule, (iii) an analysis of the final government-wide small business mentor-protégé rule, and (iv) business continuity planning for registered investment companies.

Coalescing Themes: The SEC Echoes FINRA's Focus on Culture

On the heels of FINRA's firm culture survey, Gary Barnett, the Deputy Director of the SEC's Division of Trading and Markets, discusses firm culture. Director Barnett argues that culture mitigates conduct risk. Click here to continue reading our summary of how an institution should "walk the walk" and "talk the talk."

A Tale of Two Vice Presidents: Pay-to-Play and the Running Mates

It was the best of times, it was the worst of times. For investment advisers and others subject to the pay-to-play rules, that is. Although both vice presidential picks have gubernatorial experience, because Mike Pence is a sitting governor and Tim Kaine is a former governor, there are certain pay-to-play rules that apply to contributions to Trump/Pence that do not apply to Clinton/Kaine. Thus, the Pence pick has important implications for many companies and firms engaged in the financial services industry. For more on the pay-to-play rules, click here.

SBA Releases Final Government-Wide Small Business Mentor-Protégé Rule

On August 24, 2016, a final U.S. Small Business Administration (SBA) rule will take effect that substantially expands the opportunities for large and small businesses to jointly pursue government contracts by establishing a government-wide small business mentor-protégé program. Critically, under the final rule, a small business protégé firm is permitted to agree to sell or otherwise convey to its mentor an equity interest of up to 40% in the protégé. A full analysis of the final rule is outlined here.

The SEC's Division of Investment Management Issues Guidance on Business Continuity Planning for Registered Investment Companies

The SEC's Division of Investment Management recently issued a Guidance Update on business continuity planning for registered investment companies. Business continuity planning is critical to a firm's ability to continue operations during, and recover from, a significant business disruption. This guidance also contains important recommendations with respect to a firm's critical service providers. To learn more, continue reading here.

Presentation Materials Now Available:

Who Is the New Twenty-First Century CCO? Current Issues in CCO Liability

Venable and the National Society of Compliance Professionals (NSCP) recently hosted a webinar, "Who Is the New Twenty-first Century CCO? Current Issues in CCO Liability." Don Andrews, Michael R. Manley, and Jerry Baker, former Executive Director of SIFMA's C&L Society, led an interactive discussion on the current role of the CCO and best practices for the way forward for them in the current regulatory environment.

Webinar Recording

Click here to read past issues of Venable's Fund Forum.