S1:E5 | Origins of the SEC's Asset Management Unit | Compliance In Context
Welcome back to The Securities Compliance Podcast. In this episode, we cover the controversial issue of Chief Compliance Officer (CCO) liability and address recent remarks and recommendations from SEC’s Commissioner Hester M. Peirce to clarify CCO responsibilities.
The interview segment features Rob Kaplan and Bruce Karpati discussing the origin story of SEC’s Asset Management Unit. Finally, we continue the History Has Your Back series by taking deep look into a letter from Julius Caesar to Cicero during the Roman Civil War to shine a light on opportunities for personal and professional growth.
Based on listener feedback, regular episodes of The Securities Compliance Podcast will drop every two weeks and may occasionally offer extended interviews with bonus content. In addition, the podcast will expand its offerings to include a master class miniseries for members of the National Society of Compliance Professionals (NSCP), and the future launch of the Lessons From the Frontline series.
Topics:
Headlines:
● When the Nail Fails–Remarks before the National Society of Compliance Professionals analyzing CCO liability
Interview:
● Origin Story: Asset Management Unit’s evolution and impact
● SEC: Building the expertise in specialized areas, including five experts and fundamental areas of investment management
● Process initiatives and improvements
● Seeds of Collaboration: Leverage expertise across different SEC divisions
● Conflicts of Interest represented the foundation for issues review by the AMU
● NSCP Private Fund Forum
● Horizon issues for private funds: supervisory responsibilities and valuation issues
History Has Your Back:
● Ancient Rome is split between two separate factions
● In a letter to Cicero, Julius Caesar employs a strategy of mercy and empathy as a sign of true strength.
● Compliance professionals can show real strength and gain credibility inside their firms through understanding and empathy
Quotes:
“Although founded in early 2010...Asset Management Unit...it was a product of really an unfortunate coincidence of two...reputationally adverse issues that hit the SEC...Bernie Madoff Ponzi scheme...financial crisis.” - Rob Kaplan
“If you look at the two big things...Madoff and the financial crisis...what comes out of that was there was a lack of expertise.” - Bruce Karpati
“The mentality changed...there could be more organization around how you did things, there could be more expertise, and frankly, there could be a lot more aggressiveness because we had to act quickly.” - Bruce Karpati
“I feel very fortunate to have been in the unit…there’s so much productivity...impact on compliance....the Asset Management Unit is an enforcement mechanism...the industry has come a long way.” - Bruce Karpati
Resources: