Products & Practices: Due Diligence of Service Providers

Description

This course is intended for investment adviser representatives and investment adviser firm compliance staff members wanting to gain an understanding of and implement a due diligence review process for service providers utilized by the firm to perform certain advisory functions. In October 2022, the U.S. Securities and Exchange Commission (“SEC”) proposed Rule 206(4)-11, which would require SEC registered investment advisers to conduct both documented due diligence before hiring, and continued oversight of, third parties when outsourcing certain functions necessary to the adviser’s provision of investment advice. The speaker explains how the proposed rule may impact investment adviser firms. The speaker will also discuss with attendees some of the best practices all investment adviser firms should currently have in place when performing due diligence of service providers and the expectations of regulator. Equal attention is given to the due diligence review process itself and what investment advisers should look for with each service provider, including red flags, when performing such a review. This course provides one credit in the Products & Practices category.