As the new year begins, it is important for investment managers, private funds, commodity pool operators, and other investment management professionals to review the array of regulatory requirements they are obligated to fulfill.
We hope that this Regulatory & Compliance Calendar and Guidebook 2023 and accompanying materials will be a useful tool for managing legal and compliance requirements throughout the year.
Regulatory & Compliance Calendar and Guidebook 202
In assessing your 2023 compliance strategy, it is important to keep in mind not only individual requirements and best practices, but also the larger themes defining the regulatory and enforcement environment.
These themes should be reviewed by advisers in light of operational and compliance challenges they have faced and how they have modified their compliance programs to adapt to these changes.
In our view, last year's risk alerts continue to send three clear messages:
- Transparency is a priority. The SEC is quick to act in cases where there is a lack of required disclosure or a conflict of interest, and in cases where an investment manager made a material misrepresentation. Firms should endeavor to be scrupulously transparent in their arrangements and transactions.
- Policies and procedures are just the start. Firms need to have a solid infrastructure that translates policies and procedures into actions and behaviors. This includes controls, internal audit functions and appropriate and timely escalation protocols. Moreover, firms must act on and follow policies and procedures in a way that reasonably ensures compliance with such policies and procedures, and applicable law.
- Compliance needs to be approached holistically. Compliance
procedures cannot be applied in a check-the-box fashion. Firms must
implement a risk-based approach driven by thorough due diligence of
clients, employees and vendors.
Firms and managers that follow a rigorous application of requirements while keeping an eye on big-picture trends will be well positioned to avoid both the tangible and intangible costs that come with compliance shortfalls.
We look forward to working with you in the year ahead.
REGULATORY AND COMPLIANCE CALENDAR
A FEW NOTES ON THE REGULATORY AND COMPLIANCE CALENDAR
This Regulatory and Compliance Calendar covers certain regulatory requirements applicable to all investment managers (including SEC-Registered Managers, Exempt Reporting Advisers, CPOs, and CTAs) and private funds. It does not cover CPO obligations with respect to CFTC Regulation 4.12 Pools, CFTC Regulation 4.13(a) (1) Pools, CFTC Regulation 4.13(a)(2) Pools, or CFTC Advisory 18-96 Pools. If an SEC-Registered Manager is also a CPO and/or a CTA, it must consider the requirements applicable to CPOs and/or CTAs discussed below, and vice versa. Similarly, if an Exempt Reporting Adviser is also a CPO and/or a CTA, it must consider the requirements applicable to CPOs and/or CTAs discussed below, and vice versa
The calendar assumes the fiscal year is the calendar year; a fiscal year other than the calendar year will require the deadlines of some of the listed actions to be adjusted. For deadlines that fall on nonbusiness days or holidays, please check the relevant filing site or contact a member of the Winston team for guidance. Regulatory requirements without fixed deadlines are listed at the end of the calendar. A Glossary of defined terms is included in Section 3 on page 29.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.