Hedge Fund Enforcement & Regulatory Developments 2010

Overview

Why You Should Attend

The SEC, FSA and other regulators have embraced an unprecedented focus on the activities of hedge funds and the professionals who work with them.  Given the SEC Enforcement Division’s stated commitment “to pulling back the curtain on hedge fund operations,” it is more important than ever for those in the business to understand these initiatives and adopt effective compliance and legal strategies to deal with them.  With the CFTC’s  expanded role in regulating derivatives and comprehensive regulatory and registration reform already in place, regulators have new issues they must deal with.  In addition, they must continue to look for signs of insider trading, improper valuations and disclosures, scrutinize the activities of so-called “feeder funds,” and review activities surrounding redemptions and gates.  Similarly, their continued attention to short selling, electronic trading, internal controls and risk management remains the focus of regulatory concern among those in the hedge fund industry.

At this program, a panel of distinguished government, industry and legal experts will examine current and anticipated enforcement, regulatory, legislative and compliance priorities. They will also analyze and discuss the effects these priorities have and will have on hedge fund managers and their advisers, and provide practical guidance regarding effective compliance strategies going forward.

What You Will Learn

• SEC, FSA, CFTC, SRO and New York Attorney General hedge fund enforcement and examination priorities, including the expanded role of the new SEC specialized Asset Management Unit
• Strategies to protect against insider trading, including issues relating to mosaic research, credit default swaps, information sharing and procedures to control problematic dissemination of market rumors
• Regulatory reform and the new registration requirements, what you need to prepare for and what you must do now
• How to prepare for an OCIE inspection and what will change for registrants in the post-regulatory reform world
• How the CFTC will carry out its expanded regulatory mandate in the areas of derivatives and swaps
• Compliance and operational issues affecting hedge funds, including the SEC’s short sale rules and Rule 105, redemptions, gating, “pay-to-play”, and custody requirements
• How to deal with “wearing multiple hats” problems and the best way to manage conflicts of interest

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 session 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 receive a complimentary copy of PLI's comprehensive Course Handbook. This softcover, bound volume was written to augment this 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

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 Priorities - The Regulators’ Perspective

• SEC enforcement priorities and trends
• FSA’s focus on insider dealing, valuation and hedge fund trading
• FINRA’s enforcement activities affecting hedge funds
• Enforcement focus on short selling and Reg M
• New York State Attorney General’s hedge fund priorities

Margaret Cole, James E. Day, David Markowitz, Lorin L. Reisner

10:15  The Role of SEC Inspections and Examinations in the Enforcement Process

• Changes in the SEC’s inspection and examination program and process
• SEC current hedge fund examination priorities
• What to do before the regulators come knocking - how to prepare for an SEC exam
• Keeping the exam with the examiners - how best to avoid a referral to Enforcement in the new environment
• The biggest exam mistakes you can make and how to avoid them

Wayne M. Aaron, Norm Champ, Luis R. Mejia, Lori Richards

11:15  Networking Break

11:30  Recent Regulatory Developments Affecting Hedge Funds - Compliance Considerations

• Electronic trading and sponsored access
• Short selling
• Large trader reporting system
• Prime brokerage relationships in the post-Lehman era
• Anticipating post-registration compliance

Michele J. Bianco, James A. Brigagliano, Brian T. Daly, K. Susan Grafton

12:30  Lunch

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

1:45  CFTC’s Expanded Role in Hedge Fund Regulation and Enforcement

• Current CFTC enforcement priorities and developments
• CFTC’s expanded role in the regulation of derivatives and swaps
• Reporting issues for funds of funds under CFTC and NFA rules
• Part 4 exemptions
• Derivatives and hedge funds - new enforcement issues

Geoffrey F. Aronow, Dan M. Berkovitz, Rita M. Molesworth, Karl Wachter

2:45  Thorny Hedge Fund Hypotheticals - Navigating the New Enforcement Paradigm

• Insider trading or is it?
• Self reporting for hedge funds - do different rules apply?
• Consistency in investor treatment - legal requirements and ethical dilemmas
• Conflicts of interest and how best to manage them in the current environment
• Whose duty is it to disclose?

Andrew B. David, Bruce Karpati, Joan McKown, Audrey Strauss

3:45  Networking Break

4:00  Financial Regulatory Reform and What it Means for Hedge Funds

• Registration
• OTC derivatives
• Systemic risk regulation
• Resolution authority
• Global considerations

Marcy Engel, K. Susan Grafton, Stuart J. Kaswell, Roy J.  Katzovicz

5:00  Adjourn

Faculty

Chairperson(s)

Barry R. Goldsmith, Gibson, Dunn & Crutcher LLP

Speaker(s)

Wayne M. Aaron, Milbank, Tweed, Hadley & McCloy LLP
Geoffrey F. Aronow, Bingham McCutchen LLP
Dan M. Berkovitz, General Counsel, Commodity Futures Trading Commission
Michele J. Bianco, Senior Vice President and Associate General Counsel, Bank of America Merrill Lynch
James A. Brigagliano, Deputy Director, Division of Trading and Markets, U.S. Securities and Exchange Commission
Norm Champ, Deputy Director of the Office of Compliance, Inspections and Examinations, U.S. Securities and Exchange Commission
Margaret Cole, Director of Enforcement and Financial Crime, The Financial Services Authority
Brian T. Daly, Chief Legal and Compliance Officer, Kepos Capital LP
Andrew B. David, General Counsel and Chief Compliance Officer, Aristeia Capital
James E. Day, Associate Vice President and Chief Counsel, Enforcement Department, FINRA
Marcy Engel, Chief Operating Officer and General Counsel, Eton Park Capital Management, L.P.
K. Susan Grafton, Gibson, Dunn & Crutcher LLP
Bruce Karpati, Co-Chief, Asset Management Unit; Division of Enforcement, U.S. Securities and Exchange Commission
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.
David A. Markowitz, Special Deputy Attorney General for Investor Protection, New York State Office of the Attorney General
Joan McKown, Jones Day
Luis R. Mejia, DLA Piper LLP
Rita M. Molesworth, Willkie Farr & Gallagher LLP
Lorin L. Reisner, Deputy Director, Enforcement Division, U.S. Securities and Exchange Commission
Lori Richards, Principal, PricewaterhouseCoopers LLP
Audrey Strauss, Fried, Frank, Harris, Shriver & Jacobson LLP
Karl Wachter, General Counsel, Magnetar Capital LLC

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

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.