A Guide to Ethical Decision Making and Lessons Learned From SEC Enforcement Cases
August 5, 2010
1:00 PM – 3:00 PM EDT
Presented by: TBD
Description: The Investment Advisers Act of 1940 is based on the central premise that investment advisers are fiduciaries to their clients. As a fiduciary, an investment adviser has an affirmative duty of care, loyalty, honesty, and good faith to act in the best interests of its clients. The fiduciary nature of an investment adviser’s obligations creates an ethical component to essentially all of the firm’s activities.
Business ethics for business organizations, including investment advisers, can be defined as written and unwritten codes of conduct and values that govern decisions and actions of individuals within an organization, as well as the organization as a whole. An organization’s ethical culture sets standards for determining the difference between good and bad decision-making and behavior. However, the distinctions between moral right and wrong are not always so clear. Such situations can lead to ethical dilemmas and compromise your firm’s mission to adequately fulfill its fiduciary duty as an investment adviser.
The expert instructors for this session will analyze both the conceptual scope and practical reach of an adviser’s fiduciary duty to its clientele and how the SEC applies this standard to your compliance program and the conduct of your firm’s employees. The session will also cover identification and resolution of conflicts of interest, best practices for inculcation of a strong ethical culture of compliance throughout your firm, the respective roles of management and compliance in driving this process, and a survey of instructive SEC enforcement cases.
Learning Objectives:
- Participate in a dialogue about ethical decision-making to enhance your and your firm’s ethical awareness
- Review examples of ethical decision-making to critique potential decisions
- Use SEC enforcement cases to identify, analyze and discuss ways to resolve universal ethical dilemmas and challenges.
For Whom: Chief Compliance Officers, Ethics Officers, Compliance Staff at all levels, Management, Legal counsel, Auditors
Suggested Skill Level: Intermediate
Pre-requisites for participation: No prerequisites are required. However, attendees can benefit by reviewing the Investment Advisers Act of 1940, especially Rule 204A-1, to become familiar with the structure and terms.
Continuing Education Credits: Recommended CPE Credit: 2
