Body of Knowledge
The Reporting Curriculum will identify principal reports that compliance professionals are responsible for preparing and/or reviewing. Some of these reports are required to be completed and filed on forms adopted by regulatory agencies. Others are internal reports which may be required by regulatory agency rules or prepared as a matter of best industry practice.
The readings and course materials are designed to familiarize candidates with the general content and filing requirements of the forms that are required to be filed with regulatory agencies. They are also designed to familiarize candidates with the subject matter and persons responsible for preparing various internal reports.
Readings
Learning Objective
The candidate should be able to demonstrate a thorough knowledge of the principal reporting and filing requirements of registered investment companies, investment advisers and broker-dealers as well as internal reports prepared and/or reviewed by compliance professionals.
Learning Outcomes
Investment Adviser Filing Requirements
“Money Manager’s Compliance Guide” Clifford J. Alexander and Arthur C. Delibert Thompson Publishing Company (1995)
After reading Tab 400 of this publication, candidates should be able to:
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define the activities that require an investment company to register under the Investment Company Act. (Knowledge and Comprehension)
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discuss the registration process for an investment company. (Knowledge and Comprehension)
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summarize the requirements for an adviser to update information in its prospectus and SAI. (Synthesis and Evaluation)
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explain the reporting requirements for an adviser whose discretionary clients own five percent or more of a class of equity securities. (Knowledge and Comprehension)
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explain the reporting requirements for persons who beneficially own 10 percent or more of a class of equity securities. (Knowledge and Comprehension)
“Form ADV: Uniform Application for Investment Adviser Registration” U.S. Securities and Exchange Commission
After reading this document, candidates should be able to:
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describe the requirements for electronic filing of Form ADV. (Knowledge and Comprehension)
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define the terms “Advisory Affiliated Control” and “Related Person” as they are used in Form ADV. (Knowledge)
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list the policies, procedures and other activities of an adviser that must be adequately disclosed in Part II of Form ADV. (Knowledge)
Broker-Dealer Filing Requirements
“Broker-Dealer Law and Regulation” Third Edition, Norman S. Poser, ASPEN Publishers (2006 Supplement)
After reading Chapter 14 of this publication, candidates should be able to:
“Broker-Dealer Regulation” Clifford E. Kirsch, Practicing Law Institute (June 2005)
After reading Chapter 15 of this publication, candidates should be able to:
“Form BD: Uniform Application for Broker-Dealer Registration”U.S. Securities and Exchange Commission
After reading this document, candidates should be able to:
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describe the requirements for electronic filing of Form BD. (Knowledge and Comprehension)
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define the terms “Control” and “Control Affiliate” as they are used in Form BD. (Knowledge and Comprehension)
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list the disclosures of a broker-dealer that must be adequately disclosed in Form BD. (Knowledge)
“Form X-17A-5, Annual Audited (“FOCUS”) Report” U.S. Securities and Exchange Commission
After reading this document, candidates should be able to:
“NASD Rule 3070” National Association of Securities Dealers
After reading this document, candidates should be able to:
“NASD Notice to Members 02-34: Reporting of Criminal Offenses” National Association of Securities Dealers, June 2002
After reading this document, candidates should be able to:
“Forms U-4 and U-5” National Association of Securities Dealers
After reading these documents, candidates should be able to:
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explain when Form U-4 and Form U-5 are required to be filed. (Application and Analysis)
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discuss the principal information required to be disclosed in Form U-5. (Knowledge and Comprehension)
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describe the types of events that require amendments to Form U-4. (Knowledge and Comprehension)
Investment Company Filing Requirements
“Money Manager’s Compliance Guide” Clifford J. Alexander and Arthur C. Delibert
Thompson Publishing Company (1995)
After reading Tab 400 of this publication, candidates should be able to:
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define the activities that require an investment company to register under the Investment Company Act. (Knowledge and Comprehension)
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discuss the registration process for an investment company. (Knowledge and Comprehension)
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summarize the requirements for an adviser to update information in its prospectus and SAI. (Synthesis)
After reading Tab 500 of this publication, candidates should be able to:
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list the periodic financial reports that investment companies are required to file with the SEC. (Knowledge and Comprehension)
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describe the requirement for reporting proxy voting records of investment companies. (Knowledge and Comprehension)
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describe the requirements for filing information on investment company reporting fidelity bonds. (Knowledge)
After reading Tab 600 of this publication, candidates should be able to:
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explain the requirements for filing sales literature of investment companies. (Application and Analysis)
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describe the process for retroactively listing and paying for shares sold by an open-end investment company. (Knowledge and Comprehension)
Reporting Personal Securities Trading
“Investment Adviser Trading Desk Activities” NSCP 1999 National Membership Meeting
Clifford J. Alexander
After reading this document, candidates should be able to:
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identify the persons subject to personal securities transactions reporting requirements under the code of ethics of the Advisers Act and Investment Company Act. (Knowledge and Comprehension)
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describe the reports on securities transactions that are required to be filed on personal securities transactions under codes of ethics. (Knowledge and Comprehension)
Compliance Program Reporting
“Final Rule: Compliance Programs of Investment Companies and Investment Advisers”
U.S. Securities and Exchange Commission
After reading this document, candidates should be able to:
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describe factors to be considered during an annual review of the compliance program of an investment adviser. (Knowledge and Comprehension)
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list the areas that must be addressed by a Fund’s Chief Compliance Officer in the annual written report furnished to the board on the operation of the Fund’s compliance program. (Knowledge and Comprehension)
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explain the term “material compliance matter” as defined in Rule 38a-1(e)(2) under the Investment Company Act. (Application and Analysis)
SEC: “Questions Advisers Should Ask While Establishing or Reviewing Their Compliance Programs”
May 2006
After reading this document, candidates should be able to:
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discuss the types of risks that should be addressed in a compliance program. (Knowledge and Comprehension)
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describe the types of policies and procedures that would address these risks. (Knowledge and Comprehension)
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identify the types of forensic testing and reports that can be utilized to detect instances where policies and procedures may be circumvented or otherwise violated. (Knowledge and Comprehension)
Speech by Lori Richards, Director of SEC’s Office of Compliance Inspections and Examinations, 2006 ICI Securities Law Developments Conference
After reading this speech, candidates should be able to:
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list the areas typically covered by annual reviews of compliance programs. (Knowledge and Comprehension)
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identify the types of deficiencies that the SEC staff has found during examination of reports on compliance program annual review. (Knowledge)
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