46 min
S4:E13 | The Impact of Data on Compliance Part I | Compliance In Context The Securities Compliance Podcast: Compliance In Context
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- Business
Welcome back to the Compliance in Context Podcast! On today’s show, we welcome in David Scalzetti, Senior Director of Regulatory Products and Strategy at ICE, as part one of a two-part program looking at the impact of data on compliance. In the first part of our interview, David will look at how data can support your firm’s compliance program in any number of areas including portfolio management, liquidity, valuation, fund reporting. In our Headlines section, we look at Commissioner Uyeda’s second term and a recent challenge from SIFMA regarding the Department of Labor’s new “Retirement Security Rule” proposal. And finally, we’ll wrap up today’s show with another installment of What’s On My Mind, where we look at an interesting characteristic of the American bison and what it can teach us about the upcoming busy season for compliance officers.
Show
Headlines
Mark T. Uyeda was recently sworn in for his second term as SEC Commissioner
SIFMA comment letter requesting DOL to withdraw “Retirement Security Rule” proposal
Interview with David Scalzetti
How has the topic of valuation continued to evolve in the compliance space and how can data be used with valuation to enhance a firm’s compliance program?
What are the compliance obligations associated with SEC Rule 2a-5 of the Investment Company Act?
How can data support compliance with good faith determinations of fair value in compliance with 2a-5?
How can data support compliance with valuation methodologies across investment strategies?
Best practices when thinking about and establishing a valuation process
The impact of data on liquidity and portfolio management
Establishing a liquidity risk management program in compliance with SEC Rule 22e-4 under the Investment Company Act
How can firms use data on liquidity to manage through volatile markets?
How can portfolio management and liquidity data be used to substantiate compliance with the SEC Marketing Rule?
What’s On My Mind
Understanding the American bison and how it faces adversity
Quotes
11:28 – “We’ve been a major consumer of underlying input data and analytics information. So collecting bids, and quotes, and tree data, and other information that is very useful to understanding the valuation. Historically, most clients just want the answer key. Like, you know, ‘I don’t care what the inputs are, just tell me what your good faith estimate of that fair value price is.’ But as we’ve evolved over time as an industry and the regulators have evolved, you’ve seen more and more requests from the regulators to better understand what went into that valuation and how they get comfortable using a particular valuation. When, in a lot of cases, the underlying input data could lead to a range of good faith estimates. So what we’ve noticed and what we’ve been focusing on is repurposing a lot of that input data into metadata that is useful for whether it’s an IPV team or a compliance officer or someone in regulation or reporting to better understand how that evaluation works.” – David Scalzetti
20:17 – “So backtesting is a huge piece…Being as large of a provider as we are and [with the] number o
Welcome back to the Compliance in Context Podcast! On today’s show, we welcome in David Scalzetti, Senior Director of Regulatory Products and Strategy at ICE, as part one of a two-part program looking at the impact of data on compliance. In the first part of our interview, David will look at how data can support your firm’s compliance program in any number of areas including portfolio management, liquidity, valuation, fund reporting. In our Headlines section, we look at Commissioner Uyeda’s second term and a recent challenge from SIFMA regarding the Department of Labor’s new “Retirement Security Rule” proposal. And finally, we’ll wrap up today’s show with another installment of What’s On My Mind, where we look at an interesting characteristic of the American bison and what it can teach us about the upcoming busy season for compliance officers.
Show
Headlines
Mark T. Uyeda was recently sworn in for his second term as SEC Commissioner
SIFMA comment letter requesting DOL to withdraw “Retirement Security Rule” proposal
Interview with David Scalzetti
How has the topic of valuation continued to evolve in the compliance space and how can data be used with valuation to enhance a firm’s compliance program?
What are the compliance obligations associated with SEC Rule 2a-5 of the Investment Company Act?
How can data support compliance with good faith determinations of fair value in compliance with 2a-5?
How can data support compliance with valuation methodologies across investment strategies?
Best practices when thinking about and establishing a valuation process
The impact of data on liquidity and portfolio management
Establishing a liquidity risk management program in compliance with SEC Rule 22e-4 under the Investment Company Act
How can firms use data on liquidity to manage through volatile markets?
How can portfolio management and liquidity data be used to substantiate compliance with the SEC Marketing Rule?
What’s On My Mind
Understanding the American bison and how it faces adversity
Quotes
11:28 – “We’ve been a major consumer of underlying input data and analytics information. So collecting bids, and quotes, and tree data, and other information that is very useful to understanding the valuation. Historically, most clients just want the answer key. Like, you know, ‘I don’t care what the inputs are, just tell me what your good faith estimate of that fair value price is.’ But as we’ve evolved over time as an industry and the regulators have evolved, you’ve seen more and more requests from the regulators to better understand what went into that valuation and how they get comfortable using a particular valuation. When, in a lot of cases, the underlying input data could lead to a range of good faith estimates. So what we’ve noticed and what we’ve been focusing on is repurposing a lot of that input data into metadata that is useful for whether it’s an IPV team or a compliance officer or someone in regulation or reporting to better understand how that evaluation works.” – David Scalzetti
20:17 – “So backtesting is a huge piece…Being as large of a provider as we are and [with the] number o
46 min