New SEC Guidance for Robo-Advisers: Best Practices for Disclosure and Operation Under the Investment Advisers Act

A live 90-minute CLE webinar with interactive Q&A


Tuesday, May 23, 2017
1:00pm-2:30pm EDT, 10:00am-11:30am PDT

Early Registration Discount Deadline, Friday, April 28, 2017


This CLE webinar will discuss unique disclosure and transaction issues associated with the use of robo-advisers in the financial services industry, and the new SEC guidance as well as existing FINRA advice which investment advisers need to consider in incorporating algorithms and other automated services into the advisory function.

Description

On Feb. 23, 2017, the SEC published information and guidance for investors and the financial services industry on the use of “robo-advisers”— computer algorithms used to provide investment advisory services online. It makes a number of specific suggestions on meeting disclosure, suitability and compliance obligations under the Investment Advisers Act of 1940 (the “Advisers Act”). Read together with the “Report on Digital Investment Advice” issued by FINRA in March 2016, the SEC guidance provides useful guideposts that can also inform IAA programs.

Unlike traditional investment advisers, robo-advisers offer varying levels of human interaction with their clients and sometimes none at all. A potential investor typically responds to a questionnaire on a website, after which the robo-adviser generates and manages an investment portfolio based on the responses. While robo-advisers can give retail investors more affordable access to investment advisory services, their use presents unique regulatory challenges.

The guidance confirms that robo-advisers registered with the SEC are subject to both the substantive requirements and the fiduciary obligations of the Advisers Act. Special disclosures may be required, including any unique aspects of a robo-adviser’s business model, the functions performed (generating and rebalancing a portfolio, for example), risks presented, and degree of third-party and human involvement in the advisory function. Robo-advisers need counsel on how best to incorporate disclosures into offering materials and questionnaires.

Listen as our authoritative panel discusses the disclosure, suitability and compliance obligations of robo-advisers as articulated in the recent SEC guidance and the 2016 FINRA report. The panel discussion will include best practices for preparation of investor questionnaires and other investment materials, and the administration of robo-advised accounts.

Outline

  1. Robo-advisers and the automation of investment advisory services
  2. Issues presented by the lack of human involvement
  3. New SEC guidance
  4. 2016 FINRA Report on Digital Investment Advice
  5. Best practices for robo-advisers—disclosure, suitability and compliance under the Advisers Act

Benefits

The panel will review these and other key issues:

  • What is a robo-adviser, and how is it distinguished from a traditional investment adviser?
  • What regulatory concerns arise because of the automated nature of the customer relationship?
  • What kinds of disclosures are required for robo-advisers, and where should they appear?
  • How should assets under management (AUM) be calculated for robo-advisers?
  • What are the best practices for compliance with the Advisers Act in light of the recent SEC guidance and the 2016 FINRA report?

Faculty

Mark D. Perlow, Partner
Dechert, San Francisco

Mr. Perlow represents mutual funds, hedge fund managers, fund independent directors, investment advisers, and broker-dealers on a broad range of regulatory and transactional matters. He has extensive experience structuring, forming and reorganizing mutual funds and hedge funds; preparing and negotiating fund documents and agreements; and assisting clients on adviser and fund mergers, acquisitions, and adoptions. He counsels both fund sponsors and fund investors on regulatory aspects of and issues posed by alternative funds, derivatives, short selling, market structure, and exchange-traded funds. He also advises fund sponsors on matters arising from new investment vehicles. Having served as senior counsel in both the SEC’s Office of the General Counsel and the Division of Enforcement, he has considerable experience with SEC rule-making, submissions, enforcement, examinations and compliance activity.

Gary J. Ross, Founder and Managing Attorney
Jackson Ross, New York

Mr. Ross focuses his practice on securities law, venture capital and private equity, and corporate governance. He regularly counsels registered and exempt investment advisers as to compliance issues, and has extensive experience advising as to SEC-registered and exempt capital markets transactions, including initial public offerings, common and preferred equity offerings and debt offerings. He has also been engaged as an expert witness in commercial litigation matters.

Catherine Courtney Gordon, Of Counsel
Morgan Lewis & Bockius, Washington, D.C.

Ms. Gordon focuses her practice on the regulation of broker-dealers and investment advisers under the federal and state securities laws and the rules of self-regulatory organizations (SROs), with a focus on fiduciary duty and the intersection of advisory and brokerage services. Prior to rejoining the Firm in 2016, she served as senior counsel in the Chief Counsel’s Office and the Disclosure Review and Accounting Office of the Division of Investment Management of the US Securities and Exchange Commission, where she worked on a broad range of investment advisory matters including status and registration, disclosure, fiduciary duty, performance marketing and social media and provided guidance on regulatory examinations and enforcement actions. She also performed analysis and review of investment company filings under the Federal securities laws.


Live Webinar

Live Webinar $247.00

Includes Early Discount Savings of $50.00 (through 04/28/17)

Add a colleague on the same connection in the same room for only $97.00 in the shopping cart or by calling customer service.

This webinar is eligible for at least 1.5 general CLE credits.

CLE credits are not available for PR.

*In KS, OH, PA, for more than 1 attendee on the connection you must contact Strafford CLE via email or call 1-800-926-7926 ext. 35 prior to the program for special instructions.


Recordings

CLE On-Demand - Streaming Video

Includes recorded streaming video of full program plus PDF handouts.

On-demand is the only recorded format recognized for CLE credits in DE, IN, KS, LA, MS, NC, OH, OK, SC, TN, VA, WI.

AK, AZ, CA, CO, CT, DE, FL, GA, HI, IA, ID, IL, IN*, KS, KY, LA, ME, MN, MO, MT, NC, ND, NH**, NJ, NM, NV, NY, OH*, OK, OR, PA, SC, TN, TX, UT, VA, VT, WA, WI, WV, WY (Note: Some states restrict CLE eligibility based on the age of a program. Refer to our state CLE Map for additional information.)

*Only available for attorneys admitted for more than two years. For OH CLE credits, only programs recorded within the current calendar year are eligible - contact the CLE department for verification.

**NH attendees must self-determine if a program is eligible for credit and self-report their attendance.

CLE On-Demand Video $247.00
Available 48 hours after the live event

Includes Early Discount Savings of $50.00 (through 04/28/17)

How does this work?


Recorded Event

Includes full event recording plus handouts (available after live webinar).

Strafford is an approved provider and self-study CLE credit is available in most states.

AK, AZ, CA, CO, CT, FL, GA, HI, IA, ID, IL, KY, ME, MN, MO, MT, ND, NJ, NM, NY, OR, PA, TN, TX, UT, VT, WA, WV, WY (Note: Some states restrict CLE eligibility based on the age of a program. Refer to our state CLE Map for additional information.)

Strafford will process CLE credit for one person on each recording.

Additional copies of a recording can be purchased at a discount. Please call Strafford Customer Service toll-free at 1-800-926-7926 ext 10 or email customerservice@straffordpub.com to place your order.

Recorded Webinar Download $247.00
Available 48 hours after the live event

Includes Early Discount Savings of $50.00 (through 04/28/17)

How does this work?

Recorded Audio Download (MP3) $247.00
Available 24 hours after the live event

Includes Early Discount Savings of $50.00 (through 04/28/17)

How does this work?

DVD (Slide Presentation with Audio) $247.00 plus $9.45 S&H
Available ten business days after the live event

Includes Early Discount Savings of $50.00 (through 04/28/17)

How does this work?


Registration Plus Recorded Event

Best value!

Live Webinar & Webinar Download $344.00

Includes Special Savings of $250.00 (through 04/28/17)

Live Webinar & Audio Download $344.00

Includes Special Savings of $250.00 (through 04/28/17)

Live Webinar & DVD $344.00 plus $9.45 S&H

Includes Special Savings of $250.00 (through 04/28/17)


Webinar

Strafford webinars offer several options for participation: online viewing of speaker-controlled PowerPoint presentations with audio via computer speakers or via phone; or audio only via telephone (download speaker handouts prior to the program).  Please note that our webinars do not feature videos of the presenters.

Early Registration
Discount Deadline
April 28, 2017
(4 days)

or call 1-800-926-7926

Can't Attend the Live Program?

CLE Credits By State

See CLE State Map >

or call 1-800-926-7926

Customer Reviews

Very good and concise CLE.

Anthony DiSandro

Stevens & Lee

I liked that Strafford's program covered real life situations and claims.

Renee Becnel

Occidental Petroleum

The speakers were great.

Anne Browne

Sutin, Thayer & Browne

Very timely. I also liked the references to current and recent suits.

John Devlin

Lane Powell

I honestly thought this seminar was fantastic and offered real practical advice.

Jamie (E.) Kinkaid

Johnson Law Office

or call 1-800-926-7926

Banking & Finance Law Advisory Board

Irving C. Apar

Partner

Thompson Hine

Mark N. Berman

Partner

Nixon Peabody

Willa Cohen Bruckner

Partner

Alston & Bird

Lawrence Kaplan

Of Counsel

Paul Hastings

Kevin Petrasic

Partner

Paul Hastings

Laura D. Richman

Counsel

Mayer Brown

Robert M. Stern

Partner

Orrick Herrington & Sutcliffe

Andrew Stutzman

Partner

Stradley Ronon Stevens & Young

or call 1-800-926-7926

Our Guarantee

Strafford webinars are backed by our 100% Unconditional Money-Back Guarantee: if you are not satisfied with any of our products, simply let us know and get a full refund. For more information regarding complaints and refunds, please contact us at 1-800-926-7926 ext 10. Complaints regarding this program can be submitted via the course evaluation found in the “Thank you” e-mail at the end of the course.