SEC proposes rules on adviser business continuity and transition plans

2016 ◽  
Vol 17 (4) ◽  
pp. 65-70 ◽  
Author(s):  
Kay Gordon
Keyword(s):  
Design Methodology ◽  
Business Continuity ◽  
Content Type ◽  
Record Keeping ◽  
Transition Plans ◽  
The Us ◽  
Investment Advisers ◽  
Definition Of ◽  
The Universe ◽  
Practical Implications

Purpose To discuss the requirements and implications of the US Securities and Exchange Commission’s (SEC’s) proposed new Rule 206(4)-4, which would require all SEC-registered investment advisers to adopt and implement written business continuity and transition plans (BCPs) reasonably designed to address operational and other risks related to a significant disruption in the investment adviser’s operations. Design/methodology/approach Explains the proposed rules’ definition of and specific requirements of BCPs, other requirements relating to annual reviews and record-keeping, practical considerations including advisers’ need to update and revise their BCPs, and the SEC’s request for comment on issues including possible additional obligations for certain types of clients, reporting of incidents to the SEC, and filing of BCPs with the SEC. Findings By arguably broadening its approach to the universe of risks that should be addressed in a BCP, the SEC potentially places a higher burden on the advisers to design their BCPs to anticipate all material risks that may become applicable or be responsible for a violation of their fiduciary duties to clients. Practical implications Given the detailed requirements of the Proposed Rules, including as interpreted by the Proposing Release, it is likely that most registered advisers would have to revisit and revise their BCPs if the rules are adopted. Originality/value Practical guidance from experienced securities, fund management, regulatory and compliance lawyer.

OCIE issues risk alert on the most frequently identified advisory fee and expense compliance issues

2018 ◽  
Vol 19 (4) ◽  
pp. 1-3
Author(s):  
Robert Van Grover
Keyword(s):  
Design Methodology ◽  
Best Practice ◽  
Investment Management ◽  
Content Type ◽  
Informed Decisions ◽  
Policies And Procedures ◽  
The Us ◽  
Investment Advisers ◽  
Practical Implications

Purpose To summarize and interpret a Risk Alert issued on April 12, 2018 by the US SEC’s Office of Compliance Inspections and Examinations (OCIE) on the most frequent advisory fee and expense compliance issues identified in recent examinations of investment advisers. Design/methodology/approach Summarizes deficiencies identified by the OCIE staff pertaining to advisory fees and expenses in the following categories: fee billing based on incorrect account valuations, billing fees in advance or with improper frequency, applying incorrect fee rates, omitting rebates and applying discounts incorrectly, disclosure issues involving advisory fees, and adviser expense misallocations. Findings In the Risk Alert, OCIE staff emphasized the importance of disclosures regarding advisory fees and expenses to the ability of clients to make informed decisions, including whether or not to engage or retain an adviser. Practical implications In light of the issues identified in the Risk Alert, advisers should assess the accuracy of disclosures and adequacy of policies and procedures regarding advisory fee billing and expenses. As a matter of best practice, advisers should implement periodic forensic reviews of billing practices to identify and correct issues relating to fee billing and expenses. Originality/value Expert guidance from experienced investment management lawyer.

SEC adopts rules and interpretive guidance designed to enhance and clarify the obligations of financial professionals

2019 ◽  
Vol 20 (4) ◽  
pp. 35-44
Author(s):  
Michael R. Rosella ◽  
Vadim Avdeychik ◽  
Justin R. Capozzi
Keyword(s):  
Historical Context ◽  
Legal Counsel ◽  
Legal Analysis ◽  
Best Interest ◽  
Extensive Experience ◽  
Content Type ◽  
The Us ◽  
Investment Advisers ◽  
Definition Of ◽  
Practical Implications

Purpose This article provides an overview of the US Securities and Exchange Commission’s (SEC) recent approval of a package of rulemakings and interpretations designed to enhance the quality and transparency of investors’ relationships with investment advisers and broker-dealers. Design/Methodology/Approach The article provides legal analysis for and historical context of the requirements of the SEC’s adopted rules, Regulation Best Interest and Form CRS in addition to the two separate interpretations under the Investment Advisers Act of 1940, the Standard of Conduct for Investment Advisers; and the Broker-Dealer Exclusion from the Definition of Investment Adviser. Findings The SEC’s adopted regulatory package does not adopt a uniform fiduciary standard for broker-dealers and investment advisers but instead promulgates legal requirements and mandated disclosures in order to conform to the SEC’s perceived expectations for reasonable investors. Practical implications Investment advisers and broker-dealers should consult with their legal counsel in assessing how and to what extent the new regulatory package is applicable to them. Originality/Value This article provides practical guidance from lawyers who have extensive experience with the Investment Company Act, Investment Advisers Act, and the Securities Acts.

Cybersecurity enforcement actions: is the SEC bringing strict liability cases?

2016 ◽  
Vol 17 (1) ◽  
pp. 112-116
Author(s):  
Brian Rubin ◽  
Amy Xu
Keyword(s):  
Design Methodology ◽  
Strict Liability ◽  
Securities And Exchange Commission ◽  
Cyber Attack ◽  
Content Type ◽  
Enforcement Action ◽  
The Us ◽  
Investment Advisers ◽  
Practical Implications

Purpose To analyze how the US Securities and Exchange Commission (SEC) has sanctioned broker-dealers (BDs) and registered investment advisers (RIAs) when cybersecurity breaches have occurred and to discuss whether the SEC is imposing a strict liability approach. Design/methodology/approach Describes the cyber-attack of a small RIA, the remedial steps the RIA took after the attack, the SEC’s enforcement action, why this particular case is noteworthy, and the case’s implications for RIAs and BDs. Findings RIAs and perhaps BDs may face strict liability from the SEC if they are victims of cybersecurity attacks. Practical implications Firms may want to address the likelihood of an SEC enforcement action if a breach occurs by reviewing recent enforcement actions, SEC reports and statements, and FINRA reports and statements. Originality/value Discusses the possible future of SEC enforcement actions regarding cybersecurity breaches.

The operational efficiency of passenger aircraft

2006 ◽  
Vol 78 (1) ◽  
pp. 32-38 ◽  
Author(s):  
Donald McLean
Keyword(s):  
Design Methodology ◽  
Operational Efficiency ◽  
Civil Aviation ◽  
Content Type ◽  
Transport Economics ◽  
Load Factors ◽  
Consistent Assessment ◽  
Definition Of ◽  
Passenger Aircraft ◽  
Practical Implications

PurposeTo provide for the use of airlines and other civil aviation organizations a practical definition of operational efficiency and to show how it can be determined.Design/methodology/approachA brief account of air transport economics is used to demonstrate how bom load factors and aircraft utilization need to be considered in assessing operational efficiency. Then other efficiencies are treated briefly before an example is given of how the better of two fictitious aircraft can be chosen for a particular route. A second example involving the calculation of the operational efficiency achieved by an imaginary airline is also given to show that the typical value is lower than might be expected, particularly in view of the relatively high load factors involved.FindingsProvides performance values and economic figures which are typical of current airline operations.Practical implicationsUse of the proposed definition will allow the consistent assessment of the economic performance of airlines.Originality/valueAt present there is no definition of operational efficiency in general use although it is greatly needed by airlines. The definition proposed in this paper is practical and easy to use.

The pathway to marketplace insight: structuring the analysis context

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Liam Fahey
Keyword(s):  
Decision Making ◽  
Design Methodology ◽  
Content Type ◽  
Critical Part ◽  
Early Stages ◽  
Working Definition ◽  
Marketing Analysis ◽  
Definition Of ◽  
Practical Implications

Purpose By clearly mapping the pathway for managing the early stages of any marketplace analysis project, its definition, scope, framing, focus, perspective, context, imagination and data choices – the odds of generating important strategic insight can be greatly increased for executives as well as analysis teams. Design/methodology/approach A marketing analysis team should pay specific attention to how it organizes the analysis context’a process called “Structuring”. Findings A working definition of insight: new marketplace understanding that makes a difference to the organization’s thinking, decision making and action. Practical/implications 10; Nothing constricts the insight structuring process as much as lack of imagination! Originality/value The choice of analysis scope, framing, focus, perspective or methods is a critical part of the marketplace analysis structuring process that increases the possibility of distinctly different strategic inferences emerging. The article is a much needed guide to mastering strategic insight for executives and marketplace analysts.

Composition of Indian microfinance: a case for competing logics

2019 ◽  
Vol 27 (5) ◽  
pp. 1298-1316
Author(s):  
Sushanta Kumar Sarma
Keyword(s):  
Design Methodology ◽  
Belief System ◽  
Hybrid Organizations ◽  
Identity Conflict ◽  
Organizational Field ◽  
Social Entrepreneurs ◽  
Content Type ◽  
Institutional Infrastructure ◽  
Definition Of ◽  
Practical Implications

Purpose This paper aims to understand how competing logics can co-exist in the organizational field of Indian microfinance. Design/methodology/approach The paper uses the theoretical lens of an organizational field to understand the composition of the microfinance field. Using the definition of an organizational field, key players in Indian microfinance are identified and their interactions within the field are analysed to understand the emergence and co-existence of multiple logics. The data used for this paper are collected from published work on Indian microfinance. Findings The co-existence of competing logics is sustained through the creation of two sub-fields within Indian microfinance. Each of the sub-field is dominated by one institutional logic. The field originated in developmental logic of microfinance and gradually adopted the banking logic post-2000. The sub-fields are dominated by different organizational forms with different nature of interaction within the field. Research limitations/implications Actors within the field would experience institutional complexity with lesser intensity because of the existence of two distinct sub-communities with individual logic. Dual logics can sustain itself independently provided these are embedded in two different sub-communities. Despite the emergence of a new logic, the previous logic can still remain relevant given the enabling support from institutional infrastructure. Practical implications The manifestation of development and banking logics through practices and the belief system in Indian microfinance would offer useful insights for social entrepreneurs balancing the dual goals of hybrid organizations. Due to the sub-communities, a professional working with different forms of organization would experience little pressure to adjust to diverse logic and would also experience no or little identity conflict. Originality/value This paper focuses on the microfinance sector in India as an organizational field and explores the mechanism of co-existence of the dual goals of microfinance at the field level.

Virtual currency in sanctioned jurisdictions: stepping outside of SWIFT

2019 ◽  
Vol 20 (2) ◽  
pp. 39-44 ◽  
Author(s):  
Katherine Kirkpatrick ◽  
Christine Savage ◽  
Russell Johnston ◽  
Matthew Hanson
Keyword(s):  
Best Practices ◽  
Design Methodology ◽  
Virtual Currency ◽  
Content Type ◽  
The Us ◽  
Expert Analysis ◽  
Practical Implications ◽  
Foreign Assets

Purpose To understand and analyze sanctions evasion and enforcement via virtual currencies. Design/methodology/approach Discusses various jurisdictions’ attempts to further the use of virtual currency to facilitate and maximize access to international funds; analyzes the aspects that make virtual currency uniquely suited to evade sanctions; suggests best practices for industry participants to be sure to account for the differences in crypto asset structure and related risks. Findings The US Treasury Department’s Office of Foreign Assets Control (OFAC) has explicitly stated that despite virtual currency’s anonymity, industry participants are still responsible for policing and enforcing client compliance. Although sanctioned jurisdictions are thinking creatively about ways around SWIFT, the use of virtual currency to skirt sanctions presents certain challenges. Practical implications Virtual currency industry participants should understand OFAC’s specific guidance regarding compliance obligations in the cryptocurrency space, and should implement best practices and conservative measures to avoid unknowingly running afoul of sanctions laws. Originality/value Expert analysis and guidance from experienced investigations and sanctions lawyers.

Defining and developing a scale to measure strategic thinking

foresight ◽  
2018 ◽  
Vol 20 (3) ◽  
pp. 271-288 ◽  
Author(s):  
Sanjay Dhir ◽  
Swati Dhir ◽  
Payel Samanta
Keyword(s):  
Psychometric Properties ◽  
Design Methodology ◽  
Past Research ◽  
Strategic Thinking ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Content Type ◽  
Self Bias ◽  
Definition Of ◽  
Practical Implications

PurposeThis study aims to derive a sound definition of strategic thinking by horizontal analysis of past research and discussions with professionals.Design/methodology/approachThe research design includes three broad stages: item generation, scale development and assessment of scale’s psychometric properties.FindingsThe eclectic composition cuts across vocations, religions, sex and age strengthen the flexibility of application of the scale. The resulting scale shows strong psychometric properties and is expected to be useful for academics, practitioners and organizations alike.Research limitations/implicationsThe information on strategic thinking was self-reported through strategic thinking questionnaire (STQ) and is consequently at risk to be influenced by self-bias.Practical implicationsUsing the scale of strategic thinking will empower strategic thinkers to draw a more extensive scope of strategies at all levels. This will additionally bring about higher-quality procedures, increased performance and greater competitive advantage.Social implicationsThe study represents to be an imperative predecessor to strategic decision-making and may give a key to better comprehend authoritative change marvels and at last survival.Originality/valueAs the sample for our STQ has been collected from all across the country cross-sectioning different culture, gender and position of responsibility, the scale has significant robustness and implicative potential.

scholarly journals Accountability and responsibility defined

2018 ◽  
Vol 11 (3) ◽  
pp. 687-707 ◽  
Author(s):  
Stephen Keith McGrath ◽  
Stephen Jonathan Whitty
Keyword(s):  
Design Methodology ◽  
Academic Research ◽  
Internal Conflict ◽  
Future Research ◽  
Content Type ◽  
Physical Systems ◽  
Efficiency And Effectiveness ◽  
Governance Models ◽  
Definition Of ◽  
Practical Implications

Purpose The purpose of this paper is to remove confusion surrounding the terms responsibility and accountability from the general and project management arenas by creating “refined” (with unnecessary elements removed) definitions of these terms. Design/methodology/approach A method of deriving refined definitions for a group of terms by ensuring that there is no internal conflict or overlap is adopted and applied to resolve the confusion. Findings The confusion between responsibility and accountability can be characterised as a failure to separate the obligation to satisfactorily perform a task (responsibility) from the liability to ensure that it is satisfactorily done (accountability). Furthermore, clarity of application can be achieved if legislative and organisational accountabilities are differentiated and it is recognised that accountability and responsibility transition across organisational levels. A difficulty in applying accountability in RACI tables is also resolved. Research limitations/implications Clear definition of responsibility and accountability will facilitate future research endeavours by removing confusion surrounding the terms. Verification of the method used through its success in deriving these “refined” definitions suggests its suitability for application to other contested terms. Practical implications Projects and businesses alike can benefit from removal of confusion around the definitions of responsibility and accountability in the academic research they fund and attempt to apply. They can also achieve improvements in both efficiency and effectiveness in undertaking organisation-wide exercises to determine organisational responsibilities and accountabilities as well as in the application of governance models. Social implications Refined definitions of responsibility and accountability will facilitate building social and physical systems and infrastructure, benefitting organisations, whether public, charitable or private. Originality/value Clarity resulting in the avoidance of confusion and misunderstanding together with their consequent waste of time, resources and money.

scholarly journals Applying HR analytics to talent management

2018 ◽  
Vol 17 (5) ◽  
pp. 247-254
Author(s):  
Andrew Mayo
Keyword(s):  
Design Methodology ◽  
Performance Metrics ◽  
Talent Management ◽  
Senior Leadership ◽  
Content Type ◽  
Writing Models ◽  
Effectiveness And Efficiency ◽  
Definition Of ◽  
Practical Implications

Purpose The purpose of this paper is to summarise the different areas of talent management and how HR metrics and analytics can be harnessed to make those areas more effective. Design/methodology/approach The paper first discusses the different definitions of “talent”. It then takes three areas for the application of metrics and analytics – data about individuals, the effectiveness and efficiency of talent processes and the extent of the supporting culture. Findings The definition of talent should not be confined to senior leadership only, nor be fully inclusive of every employee, but organisations need to define those individuals and groups where some specific attention will benefit the organisation; it is as important to understand the potential of all employees as it is to assess their performance; metrics should be chosen for all talent processes and related to business KPIs where possible. Practical implications This is a practical paper giving guidance to talent managers in organisations on how to apply and utilise people analytics. Originality/value This paper is based mostly on the writing, models and experience of the author.

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