1. The Evolving Role of the CCO Lorna Schnase Kurt Wachholz

2. Session Overview Current Climate SEC Focus and Initiatives Role of the CCO

3. Current Climate State of FluxMultiple VoicesSystemic Reform

4. The Dilemma for Compliance RULES PRINCIPLESVERSUS Mandated Designated

5. SECs Focus Areas Harmonization between Advisers and Broker Dealers Form ADV Anti-Fraud (detection of fraud, Ponzi schemes, etc.) Privacy – Information Security

6. Other SEC Current Initiatives Adviser Political Contributions (Pay to Play rules) Hedge Funds Credit Default Swaps Dark Pools Asset-backed Securities Valuation Fund Board Oversight of Portfolio Trading Practices

7. Regional CCOutreach Attention

8. Division of Enforcement Update Initiatives Specialization Streamline Processes Office of Market Intelligence Foster Cooperation Strategic Use of Resources

9. Your Role is About Risk DELIVERABLES ASSESSMENTSVERSUS

10. Assessing Your Role Today Responsibilities Resources Reporting Liability $

11. Understanding Ownership Regulatory Rules and Requirements (CCO & Legal) Firm Policies (Management & CCO) Procedures (Management, Operations & CCO) Supervision (Management) Performance (Operations) Reporting (Operations) Evaluation (Management) Audit (CCO) Test (CCO) includes reports Update (CCO, Management, & Operations)

12. Evolving Tools Automation Manual Databases Spreadsheets

13. Leverage what you have TechnologyInformation SourcesOrganizationsRelationshipsSkillsMessage

14. Top 5 Things To Stay Ahead of the Curve 1. Leverage Free Resources 2. Participate in a local compliance discussion group 3. Utilize the standardized document request list 4. Attend SEC CCOutreach seminars 5. Focus on automation