Conference Agenda

DAY ONE: Monday, February 27, 2017
7:45
Registration and Networking Breakfast
8:30
Opening Remarks from the Conference Chair
8:40
INDUSTRY OUTLOOK
A fireside chat where the Alternative Investment Industry is Headed and How That Will Impact Operations.

Michael Lewitt
Editor, Sure Money and Author
Credit Strategist

  • Impact of the election on the alternative investment industry
  • Assessing the current state of the market, and what has changed over the past year
  • Near- and middle-term roadmap for where the marked is headed
  • Alternative investment strategy trends – what’s working and what’s not
    • Strategies into which capital is flowing now
  • How and why alternative investment operations have evolved over time
  • What will operations look like a year from now? Five years from now?
  • Evaluating the current and near-term job market for operations professionals
  • Fee trends
  • Assessing when investors are willing to pay stated fees and when to expect investors to try to renegotiate fees
9:20
Regulatory and Enforcement Roundtable: Perspectives, Priorities, and Expectations

Panelists:

Winston M. Paes
Chief, Business and Securities Fraud Section
U.S. Attorney’s Office, E.D.N.Y.

James R. Reese
CFE, Acting Chief and Risk Strategy Officer,
OCIE, SEC

Jessica M. Weissman
Assistant Director – Asset Management Unit Division of Enforcement
SEC

Alexander Wilson
Deputy Chief, Money Laundering and Asset Forfeiture Unit,
U.S. Attorney's Office, S.D.N.Y.

Moderator:

Darren LaVerne
Partner
Kramer Levin

  • Impact of the election on the regulatory and enforcement paradigm
  • Regulatory perspectives on recent compliance failures and what the industry should take away from them
  • SEC enforcement, examination, and inspection priorities and expectations
    • Cybersecurity
    • Expense allocation
    • Valuation methodologies, policies and procedures
    • Firms that have yet to be examined
  • Assessing the ‘broken windows’ approach to compliance and enforcement
  • SEC National Exam Analytics Tool (NEAT)
  • - Impact on hedge fund examinations and enforcement initiatives
  • SEC Asset Management Unit
    • When does this unit get involved?
    • What are they looking for?
      • Key focus points, initiatives, and concerns
  • New developments in trading practice enforcement
    • Spoofing and layering
  • SEC perspectives on the possibility of requiring investment advisers to pay for third party compliance reviews
  • DOJ priorities and enforcement trends
  • FCPA and bribery issues
  • Insider trading
  • AML concerns
  • Beneficial owners and the difficulties related to identification of beneficial owners
  • Agency perspectives on outsourcing aspects of compliance
  • The use of leverage by hedge funds
10:30
Networking and Refreshment Break
11:00
SPOTLIGHT Q&A: The Alternative Investor: New and Emerging Expectations, Concerns, and Investing Trends

Yehuda M. Braunstein
Partner
Sadis & Goldberg LLP

Peter Hughes
CEO and Founder
Apex Fund Services

Moderator: 

Malcolm Stott
COO
Everest Capital

  • New areas of concern and heightened scrutiny for investors
    • Red flags that will turn investors away
  • Trends in investor due diligence
  • How investors’ expectations and requirements are changing
  • Has investor tolerance for risk changed significantly?
  • Are investors concerned about the sources of a fund’s assets?
  • Where is the new generation of investors going to come from?
  • Best practices for ensuring that investors are comfortable with your firm
12:00
COO ROUNDTABLE
Insights from Operations Professionals, Including Lessons Learned in 2016, New and Emerging Best Practices, and More

Panelists:

Charles Friedberg
CFA, President and COO
Argentem Creek Partners LP

Kurt Spero
Citrine Capital Management

Moderator:

Stephen Vondrak
Vice President, Institutional Sales, East Regional Sales Manager
Backstop Solutions Group

  • What are funds hearing from investors in terms of operations and compliance issues?
  • Chief concerns of COOs
    • Regulatory issues?
    • Investor pressures?
  • What policies, processes, and procedures have been the most effective and beneficial?
  • Key challenges and how to overcome them
  • Day-to-day activities and responsibilities of COOs and their teams
  • Best practices and success stories for raising capital
  • How smaller firms with limited resources can remain profitable while satisfying regulators and investors
1:00
Networking Luncheon for Speakers and Attendees
2:15
Heightened SEC Scrutiny, New AML Requirements, Insider Trading Concerns, FATCA, FCPA Compliance, and More: Managing the Evolving Regulatory Paradigm and Turning Compliance into a Value Proposition

Panelists:

Meredith Moss
CEO and Founder
Finomial

Brynn Rail
Counsel
Ropes & Gray LLP

Moderator:

Paul Marino
MARINO PARTNERS LLP

  • Practical advice and feedback relating to recent SEC examinations
    • What questions are SEC examiners asking?
  • What are the focus areas of the SEC and what are they looking for?
  • FinCEN’s proposed AML regulatory requirements for alternative investment firms
    • Who is covered by the proposed rule and who is not?
    • What is or will be required and expected?
    • Operational and reporting requirements
    • Suspicious Activity Reports (SARs)
      • Red flags that might signal suspicious activity
    • Best practices
  • Insider trading – recent enforcement actions, Salman and its potential impact, emerging trends, and best practices for mitigating the risks of insider trading at your firm
  • FCPA and bribery issues
    • Ensuring compliance
  • Developing best practices for managing FATCA requirements
    • Overcoming the hurdles and avoiding the pitfalls associated with FATCA
    • Applicability of FATCA to U.S. entities
  • Overcoming the hurdles relating to AIFMD regulation
  • Impact of increased regulatory costs on alternatives and alpha generation
  • The keys to operating a profitable and compliant alternative investment firm
  • Using a strong, comprehensive compliance program to set you apart from your competitors and help raise capital
3:00

Networking and Refreshment Break

3:30
Satisfying Regulatory and Investor Expectations Arising from Potential Conflicts of Interest, Including Expense, Investment, and Trade Allocations, Fiduciary Responsibility Issues, and More

Panelists:

Maury Cartine
Partner-In-Charge National Alternative Investment Industry Group Tax Department
Marcum LLP

Adam Freedman
Chief Compliance Officer
Angelo Gordon & Co.

Adam J. Reback
Chief Compliance Officer
J. Goldman & Co., L.P.

Moderator: TBD

  • Fee and expense allocation
  • Investment allocation
  • Best practices for determining how to allocate fees and expenses and how to allocate investment opportunities
  • Trade allocations
    • How trades are allocated
    • Assessing the equity of trade allocations
    • Identifying potential conflicts
  • DOL fiduciary responsibility rule
    • Impact on hedge funds
    • Making the necessary adjustments to comply with the new rule
      • Documentation
    • What have other hedge funds done?
    • Best practices relating to plans and participants covered by the new rule
  • Potential conflicts involving service providers
  • Identifying and tracking potential conflicts
  • Conflict disclosure
    • Best practices for disclosing conflicts and potential conflicts
    • Pitfalls to avoid
4:15
Tax Strategies and Recovery Opportunities for Alternatives

Panelists:

Oliver Bell
Partner, Corporate and Commercial Investment Funds
Harneys, BVI

Adam D. Greenwood
Partner
Ropes & Gray LLP

Brian Sapadin
Executive Director – Hedge Fund Services
GlobeTax

  • Best practices for structuring your company in order to minimize your tax burden
  • Considerations that can impact your tax strategy
  • Implications of increasingly complicated and difficult tax processing
    • Impact on operations
  • FATCA issues
  • Self-employment tax
  • Base Erosion and Profit Shifting (BEPS)
  • Tax considerations for U.S.-domiciled firms that are interested in entering the EU marketplace
  • Tax implications that arise from inversions
  • Foreign dividend withholding tax and reclaim opportunities
  • Master feeder structure & Cayman LLC
  • Recent rate changes and trends
5:00

Conference Adjourns

5:00
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Cocktail Reception hosted by:

DAY TWO: Tuesday, February 28, 2017
8:00

Networking Breakfast

8:30

Opening Remarks from the Conference Chair

8:45

The Brave New World of Cybersecurity and Data Privacy: Adapting Your Firm to an Unpredictable and Evolving Landscape

Panelists:

Steve Bruce
Managing Partner
ASC Advisors, LLC

Michael K. Ferris
CEO
ABAcode

  • Understanding the enemy: who is motivated to go after investment management companies and what are they likely to do?
  • Realistic, implementable, and budget-conscious cybersecurity strategies for investment management companies based on scale and available capital
  • Importance of and best practices for third-party due diligence
  • Meeting the challenge of enhanced regulatory cybersecurity standards
  • Sifting through the noise emanating from government and media outlets and determining what you really need to do to protect your firm and your clients
  • Using a risk-based and economic-based approach to cybersecurity in order to strike the right balance for your firm
    • Assessing your risk
  • Incorporating lessons learned from previous cyber attacks as well as recommendations of federal and state agencies
  • Implementing sufficient testing and verification procedures
  • Ensuring that your employees are an integral part of your cybersecurity efforts
  • Developing a cyber incident response plan
  • Assessing the available preventive technologies and deciding what’s best for your firm
  • Cyber liability insurance considerations
9:45

Achieving Increased Efficiency, Managing Fund Expenses, and Improving Risk Management in Middle and Back Office Operations

Panelists:

Gaetano T. DiPietro
Director, Client Service Management
BlackRock

Charles Friedberg
CFA, President and COO
Argentem Creek Partners LP

John Pizzi
CEO
BaseVenture

  • Integrating functionality across different groups, specifically operations, compliance, and risk management, in order to increase efficiency and reduce costs
    • Cross-functionality best practices
  • New and emerging risks in the alternative investment landscape
  • Using third-party data to help mitigate risk
  • Service provider offerings and technologies that can assist firms in managing multiple risks
  • Specific risk types and how to minimize your firm’s exposure to them
  • Best practices for managing fund expenses
  • Cost-shifting considerations
  • Achieving ‘operational alpha’
    • Practical strategies for maximizing operational efficiency and excellence while reducing costs
  • Selection of custodians
    • Determining which administrator is right for your firm
  • Trends in organizational structures
  • Staffing considerations
  • Having a single CCO/COO versus a separate CCO and COO
  • How to leverage the operations team to run multiple funds
  • How automation can help increase efficiency
  • Adapting the middle- and back-office to meet evolving investor demands
10:30

Networking and Refreshment Break

11:00

Outsourcing: Why Alternative Investment Firms Are Increasingly Turning Over Compliance, Trading, and Other Functions to Third Parties, and the Costs and Benefits of Doing So

Panelists:

Romulad Beneche CPA
Vice President – Business Development
Gemini Hedge

Ankur Jain
Managing Partner, COO
Falchion Capital Management

Robert Prucnal
President
Cipperman Compliance Services

Moderator:

Jay Levy
Partner, Financial Services Industry Practice Leader
CohnReznick LLP

  • Due diligence considerations
  • Potential cost savings from outsourcing
  • Pitfalls to avoid
  • Assessing the specific costs and benefits associated with outsourcing of key functions
    • Compliance
      • To what degree should this be done?
      • Achieving the proper balance of in-house versus outsourced compliance functions
      • Outsourcing the CCO function
    • Trading
12:00

Networking Luncheon for Speakers and Attendees

1:15

How the Prime Brokerage Landscape is Changing and What It Means for Alternatives

Amy Tarlowe
COO
Alpine Global Management, LLC

William Capuzzi
Chief Executive Officer
Apex Clearing

  • Tracking the evolution of prime broker criteria and requirements relating to bringing in new clients
  • What is the current threshold for potential clients?
  • Impact of the evolving prime brokerage model on alternative investment firms
    • How are funds dealing with their prime brokers?
    • Best practices for negotiating with primer brokers
    • New strategies and trends that prime brokers are seeing
    • How banks are thinking about prime brokerage and what funds should consider, given the new regulatory environment
  • How new balance sheet requirements, as well as heightened AML and KYC oversight, are impacting banks and their relationships with hedge funds and PE
    • Financing and leveraging issues
  • Cash management considerations
1:55

Networking and Refreshment Break

2:10

Assessing the Challenges Relating to Valuation and Developing Best Practices to Overcome Them”

Panelists:

Joshua Barlow
Head of Accounting & Operational Due Diligence
PAAMCO

  • Overcoming the challenges associated with proper valuation of illiquid assets
  • Assuaging regulatory and investor concern relating to valuation issues
    • Ensuring adequate transparency in your firm’s valuation procedures
  • Valuation of Level 3 assets
    • Assessing the assumptions and expectations on which such valuations are based
  • Using third-party assessors to assist with valuation determinations
  • Comparing the hedge fund approach to valuation with the PE approach
2:45

The International Landscape: Operational and Regulatory Considerations in Key Foreign Markets

Panellists:

Paul Ellis
Head of Product Solutions - Regulatory Change
HSBC Securities Services

Derbhil O’Riordan
Partner
Dillon & Eustace

EUROPE
  • Impact of Brexit
  • Assessing and understanding EU regulatory and tax regimes
    • Common pitfalls and misunderstandings
  • Private placements
    • How this is done and in which markets
  • Which strategies are working now?
  • Updates on AIFMD
    • Key requirements
    • Structures that are working for U.S. funds
    • Hurdles and pitfalls
  • UCITS V
    • Increased regulatory hurdles and enhanced restrictions
    • Tax benefits of UCITS funds over off-shore funds
  • European Market Infrastructure Regulation (EMIR)
  • Developments in Europe relating to pooling of assets
  • Re-domiciling from offshore to Ireland in order to have easier access to the European market
  • Examining developments in Ireland’s alternative investment market
  • Tax Transparent Funds

 

EMERGING MARKETS

  • Overview of the markets in China, India, and Saudi Arabia
  • Assessing the emerging environment in China
    • How are funds investing in China?
    • Restrictions
  • Issues arising from the flow of capital into and out of Asian markets
    • Increased focus on taxation issues
  • Why global regulators, especially in Hong Kong and Singapore, are paying close attention to the UCITS model
  • Fast-tracking trade agreements
3:30

Conference Concludes