Article by Susan Krawczyk, Holly Smith, Eric Arnold
Overview. On February 4, 2003, the Securities and Exchange Commission ("SEC") proposed sweeping changes for investment advisers registered with the agency ("Advisers") that would require such firms to:
- Adopt and implement policies and procedures reasonably designed to prevent violation of the Investment Advisers Act of 1940, as amended (the "Advisers Act");
- Review those policies and procedures annually for their adequacy and the effectiveness of their implementation; and
- Appoint a chief compliance officer to be responsible for administering the policies and procedures.
These requirements are proposed to be codified in a new rule 206(4)-7 (the "Proposed Rule") under the Advisers Act, which is discussed in a release available at http://www.sec.gov/rules/proposed/ic-25925.htm (the "Release").1 The Release also seeks comment on ways to involve the private sector in fostering compliance by Advisers, including the creation of a
