Dodd-Frank Wall Street Reform

The Dodd-Frank Wall Street Reform and Consumer Protection Act, mandates that Private Equity advisers need to register with the SEC by July 21, 2011.

Dodd-Frank Act Wall Street Reform

Swap Data Repositories are required to register with the CFTC or SEC and make available on a confidential basis all data obtained by the swap data repository…and to establish and maintain emergency procedures, backup facilities, and a plan for disaster recovery.

The Act also protects from public disclosure of any “proprietary information” of the investment adviser, received by the SEC to the same extent as facts the SEC ascertains during an examination.

Proprietary Information as defined in Title IV, Section 404, Subsection 10, Part B

  • The investment or trading strategies of the investment adviser
  • Analytical or research methodologies
  • Trading data
  • Computer hardware or software containing intellectual property
  • Any additional information that the Commission determines to be proprietary

Compliance Program Requirements

  • Document compliance policies and rules, including business continuity and disaster recovery plans and testing. PAVIS Backup Disaster Recovery
  • Document the firm’s IT Infrastructure, such as e-mail and document retention systems.
  • Document where all relevant data resides (paper, electronic, remote offices, off-site, etc.)
  • Develop a compliance manual with the above items and distribute electronically to all employees, as well as all subsequent updates.
  • Automatic system backups and system monitoring.

Electronic Record Keeping Requirements

  • The use of e-mail or instant messaging needs to be retained and must be stored in a manner that permits easy location, access, and retrieval. All notes and attachments must be associated with the electronic record, as examiners may request a copy of the complete record.
  • All electronic records must be secure from unauthorized access, theft, or unintended record.

The Dodd-Frank Act requires an adviser to maintain and be subject to SEC inspection for each private fund it advices. As a result, organizations are REQUIRED to establish a compliance program. As part of the compliance program, Private Equity firms need to have a Record Keeping and Physical Documentation system in place.

Record Keeping and Physical Document Requirements Include

A collaboration management solution will assist in:

  • Maintaining a centralized contact and content management system – instrumental in easily generating and tagging compliance-oriented documentation and reports and ensuring retention requirements.
  • Attributes include – contacts, companies, investors, deals, funds, fund raising information, and all related documents to these business activities.
  • Ensuring a secure environment through the use of secure access and user privileges based on job roles.
  • Automated email campaigns and the incorporation of internal and external portal software to ensure consistent messaging.

Electronic Record Keeping

  • Tracking and storing e-mail communications in a secure environment.
  • Ensuring all e-mail attachments can be associated with the electronic record.
  • Searching email correspondence by advanced searching functionality.

EquityTouch® already has deal sourcing and collaboration tools in place that will assist in organizing and securely storing contacts, companies, investors, deals, funds, fund raising information (including emails), and all related documents to business activities.

About Cathie Briggette

Cathie is responsible for planning, development and implementation of all Touch Ahead Software’s marketing strategies, marketing communications and public relations, both internally and externally. She also serves as the Marketing Director for NSK Inc., which she joined as an associate in 1997 and where she worked as a developer on multiple mission-critical projects — including several financial projects. Prior to Touch Ahead and NSK Inc, Cathie was the Marketing Manager for the US Software Division of Objects 9000, a German-based company. And before that she was the Marketing Director for Pelikan Pens.

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