Hedge Fund Enforcement & Regulatory Developments 2009

Overview

Why You Should Attend

With the unprecedented decline in the securities, derivatives and credit markets and the regulatory aftermath of the Bernard Madoff scandal, hedge funds and their advisers are under increasing scrutiny by the SEC, Congress and the new administration. With reinvigorated new leadership at the SEC, issues surrounding enforcement and regulatory compliance in the hedge fund space are more important than ever before. The number of new investigations involving hedge funds is at record heights. Regulators are now probing new areas such as valuations and disclosures to investors, the activities of so-called “feeder funds,” rumor mongering, redemptions, gates, liquidations and restructurings.

Continued focus on short selling, internal controls and risk management, transparency, and the increasing likelihood of registration have sparked widespread debate among practitioners and those in the industry. Moreover, the SEC’s continued focus on insider trading and credit default swaps, as well as information sharing among hedge fund advisers, has affected the way hedge fund managers go about their business and continues to have a significant impact on compliance strategies going forward.

At this program, a panel of distinguished experts will examine current enforcement, regulatory, legislative and compliance priorities. This program will address the changes that new SEC Leadership will bring to hedge fund enforcement initiatives and how the Commission’s nationwide “Hedge Fund Working Group” has changed its focus during the market downturn. We will also focus on what the shape of future hedge fund regulation will look like and who will be setting the regulatory agenda in the months to come.

 

 

What You Will Learn

• SEC, SRO and New York Attorney General hedge fund enforcement and examination priorities
• The impact of the Madoff scandal on the SEC’s enforcement and inspection programs
• Strategies to protect against insider trading violations, including issues relating to credit default swaps, information barriers and procedures to control problematic dissemination of market rumors
• How to construct an effective compliance program in this environment to prioritize and guard against regulatory risk
• Compliance and operational issues affecting hedge funds, including proposed registration requirements, the SEC’s new short sale requirements and using multiple prime brokers
• Dealing with regulators in the new environment - effectively handing an enforcement investigation
• How to deal with “wearing multiple hats” problems and the best way to manage inherent conflicts of interest
• Legislative and regulatory developments affecting the regulation of hedge and private equity funds

Who Should Attend

Attorneys, hedge fund counsel and compliance professionals interested in or currently working in the hedge fund industry will benefit from this program.

Special Features

Live Webcast - Simultaneous live webcast of the New York is available for individual viewing. Webcast participants will receive streaming audio and/or video of the program, view and print the Course Handbook, and have the ability to submit questions electronically.

For more information click on the Live Webcast link in the Related Items box.

Special Bonus to all Registrants

All attendees will receive a complimentary copy of PLI's comprehensive Course Handbook. This softcover, bound volume was written to augment the program and to stand alone as a permanent reference. PLI's Course Handbooks represent the definitive thinking of the nation's finest legal minds, and are often the standard reference in the field.

Please Note: Webcast attendees will receive a downloadable version of the Handbook one business day prior to the program.

PLI Group Discounts

Groups of 4-14 from the same organization, all registering at the same time, for a PLI program scheduled for presentation at the same site, are entitled to receive a group discount.  For further discount information, please contact membership@pli.edu or call (800) 260-4PLI.

PLI Can Arrange Group Viewing to Your Firm

Contact the Groupcasts Department via email at groupcasts@pli.edu for more details.

Cancellations

All cancellations received 3 business days prior to the program will be refunded 100%. If you do not cancel within the allotted time period, payment is due in full. You may substitute another individual to attend the program at any time.

Schedule

Please plan to arrive with enough time to register before the conference begins. A networking breakfast will be available upon your arrival.

Morning Session: 9:00 a.m. - 12:30 p.m.

9:00  Opening Remarks and Introduction

Barry R. Goldsmith

9:15  Current Hedge Fund Enforcement Issues - The Regulators’ Perspective

• Current SEC enforcement priorities - cases and trends
• FINRA and NYSE Regulation enforcement activities affecting hedge funds
• New York Attorney General’s hedge fund agenda - credit default swaps
• Changes in the SEC enforcement process - what you need to know
• Hedge fund enforcement in the current economic climate - redemptions, gates and wind-downs

Robert S Khuzami, Colleen P. Mahoney, Robert A. Marchman, David A. Markowitz, Susan L. Merrill

10:15  SEC Inspections and Examinations in the Post-Madoff Era

• SEC examination priorities - issues most likely to lead to enforcement referrals
• How best to guard against turning an examination issue into an enforcement action
• Prepping for your exam and managing the process - what to do before, during and after an SEC exam
• Pushing back - email requests, internal audit reports and self-evaluative documents
• The role of inside and outside counsel in the exam process

Wayne M. Aaron, Thomas A. Biolsi, David L. Kornblau, Meryl E. Wiener

11:15  Networking Break

11:30  Current Regulatory Issues

• New registration and reporting requirements
• Short sales - disclosure and trading issues
• Beneficial ownership reporting requirements
• Use of placement agents and finders
• Prime and mini-prime brokerage relationships

Jonathan E. Breckenridge, James A. Brigagliano, Brian T. Daly, K. Susan Grafton

12:30  Lunch

Afternoon Session: 1:45 p.m. - 5:00 p.m.

1:45  Financial Regulatory Reform - How Will It Affect Hedge Funds?

• Financial services regulatory reform - where are we now and what can we expect?
• Implications of new registration requirements
• Changes in regulatory responsibilities
• Regulation of OTC derivatives and unregistered products

Marcy Engel, K. Susan Grafton, Brant Imperatore, Stuart J. Kaswell, Roy J. Katzovicz, David A. Vaughan

2:45  “Non-Traditional” Hedge Fund Enforcement in the New Regulatory Environment

• SEC Hedge Fund Working Group - latest priorities and investigations
• What’s all the hubbub about credit default swaps?
• Dealing with empowered regulators - effective strategies
• Rumors/Manipulation/Freedom of Speech - Where do you draw the line?
• How does the SEC approach valuation issues in unsettled market conditions
• Feeder funds and due diligence - what the SEC expects

Eric R. Komitee, Audrey Strauss, Ronald E. Wood

3:45  Networking Break

4:00  Constructing an Effective Hedge Fund Compliance Program - A Practical Approach

• Implementing changes in systems and procedures in response to rapidly changing market conditions and regulations
• Downsizing compliance - pitfalls and what to avoid
• Consistency in investor treatment during hard economic times - waivers and gates
• Conflicts of interest - common conflicts to consider
• Valuation - elements of an effective compliance program in the current environment
• Strategies to protect against insider trading - barriers, walls and information sharing

Nandita Hogan, John M. Liftin, Christopher J. Mahon, Martin Schwartz

5:00  Adjourn

Faculty

Chairperson(s)

Barry R. Goldsmith, Gibson, Dunn & Crutcher LLP

Speaker(s)

Wayne M. Aaron, Milbank, Tweed, Hadley & McCloy LLP
Thomas A. Biolsi, Principal, Regulatory Consulting Practice, PricewaterhouseCoopers LLP
Jonathan E. Breckenridge, Vice President, Securities Division Compliance, Goldman Sachs & Co.
James A. Brigagliano, Deputy Director, Division of Trading and Markets, U.S. Securities and Exchange Commission
Brian T. Daly, Chief Legal and Compliance Officer, Kepos Capital LP
Marcy Engel, Chief Operating Officer and General Counsel, Eton Park Capital Management, L.P.
K. Susan Grafton, Gibson, Dunn & Crutcher LLP
Nandita Hogan, Chief Compliance Officer, Breeden Capital Management LLC
Brant Imperatore, Partner, Cypress Group LLC
Stuart J. Kaswell, Executive Vice President & Managing Director, General Counsel, Managed Funds Association
Roy J. Katzovicz, Chief Legal Officer, Pershing Square Capital Management, L.P.
Robert Khuzami, Director, Division of Enforcement, U.S. Securities and Exchange Commission
Eric R. Komitee, General Counsel, Viking Global Investors LP
David L. Kornblau, Covington & Burling LLP
John M. Liftin, Managing Director and General Counsel, D.E. Shaw & Co., L.P.
Christopher J. Mahon, Managing Director, Deutsche Bank Securities, Inc.
Colleen P. Mahoney, Skadden, Arps, Slate, Meagher & Flom LLP
Robert A. Marchman, Executive Vice President, Division of Enforcement and Risk Group, NYSE Regulation
David A. Markowitz, Special Deputy Attorney General for Investor Protection, New York State Office of the Attorney General
Susan L. Merrill, Bingham McCutchen LLP
Martin Schwartz, Senior Managing Director and Chief Compliance Officer, Millennium Management, LLC
Audrey Strauss, Fried, Frank, Harris, Shriver & Jacobson LLP
David A. Vaughan, Attorney Fellow, Division of Investment Management, U.S. Securities and Exchange Commission
Meryl E. Wiener, Katten Muchin Rosenman LLP
Ronald E. Wood, Proskauer Rose LLP

Program Attorney(s)

Danielle T. Bersofsky, Program Attorney, Practising Law Institute

CLE Credit

Travel Information

New York City Seminar Location

PLI New York Center, 810 Seventh Avenue at 53rd Street (21st floor), New York, New York 10019. Message Center, program days only: (212) 824-5733.

New York City Hotel Accommodations

Due to high demand and limited inventory in NYC, we recommend reserving hotel rooms as early as possible.

The New York Hilton & Towers, 1335 Avenue of the Americas, New York, NY 10019. 1 block from PLI Center. Reservations 1-800-HILTONS or, 1-877-NYC-HILT. Please mention that you are booking a room under the Practising Law Institute Corporate rate and the Client File # is N495741. Reservations on line at www.hilton.com and enter the same Client File # in the Corporate ID # field to access Practising Law Institute rates.

The Warwick New York Hotel, 65 West 54th Street New York, NY 10019. 1 block from PLI Center. Reservations 800-223-4099 or, hotel direct 212-247-2700. Please mention that you are booking a room under the Practising Law Institute Corporate rate. Reservations on line at www.warwickhotelny.com Click reservations in menu bar on left. Select desired dates. In 'Special Rates' drop down window select Corporate Rate. In 'Rate Code' enter PLIN. Click search and select desired room type and rate plan. Or, you may email reservation requests to: res.ny@warwickhotels.com