2009 FINRA Annual Conference

May 6-8, 2009
The Westin Boston Waterfront Hotel
Boston, MA

   

This agenda is current as of April 20. Updates will continue to be made as additional speakers are confirmed. Note that times are subject to change.

 

Thursday, May 7, 2009

 

7:00 am - 6:00 pm	Registration
7:00 am - 8:00 am	Continental Breakfast
8:00 am - 9:30 am	Plenary Session

 
Plenary Session: Perspectives on Regulatory Reform

 

FINRA's Chairman and CEO joins a distinguished panel of experts in a discussion of priorities for modernizing financial regulation and perspectives on regulatory reform.

 

• John Coffee, Adolf A. Berle Professor of Law, Columbia Law School
• Fred Joseph, President, NASAA and Colorado State Securities Commissioner
• Rick Ketchum, Chairman and CEO, FINRA (moderator)
• Annette Nazareth, Partner, Davis Polk & Wardell, and former SEC Commissioner

 

9:30 am - 9:45 am	Break
9:45 am - 11:00 am	Concurrent Sessions I

 

FCPA Due Diligence

 

Enforcement trends show record increases in the number of foreign corruption investigations and prosecutions with substantial fines. In this session, panelists review the anti-bribery and accounting provisions of the Foreign Corrupt Practices Act, address key developments in FCPA enforcement and highlight the growing importance of FCPA due diligence in the business transactions of financial services firms. This session is important for attorneys and the general counsel of any firm with international operations. This session is also offered during the pre-conference.

 

• F. Joseph Warin, Gibson, Dunn & Crutcher LLP (moderator)
• Elliot Leary, KPMG LLP
• Steve Shine, Prudential

 

Sustaining a B-D Compliance Program

 

This session focuses on sustaining robust compliance and supervisory programs during challenging times. Discussion topics include how to effectively communicate compliance and regulatory updates to registered principals, preparation of the annual compliance report, the annual compliance process as a mechanism to communicate with senior management, and the importance of clarifying the roles and responsibilities of compliance and supervision. Panelists also discuss common examination findings, lessons learned from exams, and how they can be applied to improve firm compliance and supervisory programs.

 

• Mari Buechner, Coordinated Capital Securities, Inc.

• Cathleen Shine, AllianceBernstein
• Dan Sibears, FINRA (moderator)

 

Annuity Suitability and Supervision

 

This session addresses regulatory requirements and industry practices for suitability and supervision relating to the sale of fixed and variable annuities. Discussion topics include the NAIC model suitability rule, FINRA's NASD Rule 2310 and proposed updates, and Securities Act Rule 151A governing regulation of equity indexed annuities under the federal securities laws. Panelists also address effective compliance procedures for insurers and distributors, and discuss compliance approaches in various distribution channels, including career sales forces, broker networks, independent broker-dealers, financial planners and retirement markets, and independent marketing organizations (IMOs).

 

• Scott Borchert, FINRA (moderator)

• James Mumford, Iowa Insurance Division
• Susan Nash, Securities and Exchange Commission
• Scott Stolz, Raymond James Financial, Inc.

 

Product Training: Fixed Income Securities

 

This instructor-led session highlights the basic features, trading characteristics and risks of fixed income products, with a focus on municipal debt. Topics include liquidity, pricing and yield spreads, monoline insurers and product features.

 

• John Hennessy, FINRA (instructor)

 

11:00 - 11:15 am	Break
11:15 am - 12:15 pm	Plenary Session

 

Research Analyst Perspectives on the Financial Services Industry

Research analysts participate in a moderated debate on where the financial services industry is headed in light of current and projected market conditions. Areas of discussion include investment banking, securities trading, asset management and e-brokerage.

 

• Eric Moss, FINRA (moderator)

• Richard Repetto, Sandler O'Neill
• Eric Jacobson, Morningstar, Inc.

 

12:15 pm - 1:30 pm	Lunch
1:30 pm - 2:45 pm	Concurrent Sessions II

 

Litigation and Enforcement Case Trends

Securities law practitioners review recent litigations and enforcement cases, and provide an overview of new developments and trends.

 

• Susan Merrill, FINRA (moderator)

• David Sonnenberg, FINRA
• Neal Sullivan, Bingham McCutchen LLP

 

Mitigating Money-Laundering Risks

Global AML compliance specialists join regulators in a discussion of money-laundering risks—geographic, product and customer-related. Panelists share their risk-assessment practices and techniques for customer identification program verification and investigation of suspicious activity.

 

• Alma Angotti, FINRA

• Tim O’Neal Lorah, Morgan Stanley (moderator)
• Mike Rufino, FINRA
• Steve Shine, Prudential

 

Life Settlements

 

This session focuses on new laws governing industry practices for disclosure, supervision and suitability of life settlements. Topics addressed include new state laws regulating life settlements and statutory provisions addressing Stranger Owned Life Insurance (STOLI) and a review of the basis for new laws including the NAIC Viatical Settlement Model Act and NCOIL Life Settlement Model Act. Panelists also cover legal case developments affecting legislative deliberations.

 

• J. Lee Covington II, NAVA

• Larry Kosciulek, FINRA (moderator)
• Gerard Rocchi, New York Life Securities 

 

Product Training: Non-Conventional Investments - Retail Focus

 

This instructor-led session highlights features, characteristics and risks of non-conventional investments such as principal-protected CDs, retail forex, target-date funds, 130/30s and others that are gaining—or regaining—prominence in the US retail marketplace. Topics focus on retail sales and include the structure, liquidity and risks for these products.

 

• John Hennessy, FINRA (instructor)

 

2:45 pm - 3:00 pm	Break
3:00 pm - 4:15 pm	Concurrent Sessions III

 

Conflicts of Interest 

In this session, compliance and legal professionals discuss new conflicts-and potential ethical and legal implications-that are arising in light of marketplace dynamics and the blending of firm business models.

 

• Anne Flannery, Morgan Lewis

• Hans Reich, FINRA (moderator) 
• Pam Ziermann, Dougherty & Company 

 

Identifying and Addressing Issues Surrounding Diminished Capacity

Gerontology specialists from the medical and legal professions, AARP and other agencies join financial services industry representatives in a discussion of working with senior investors. Topics address identifying signs of diminished capacity, the responsibilities of the financial professional and the firm, and the ethical and legal dilemmas surrounding identification and addressing-or ignoring-the issue.

 

• Lourdes Gonzalez, Securities and Exchange Commission (moderator)

• Jason Karlawish, M.D., University of Pennsylvania Medical School
• Michelle Bryan Oroschakoff, Morgan Stanley
• Ryan Wilson, AARP

 

Variable Products

 

This session covers industry practices for the disclosure and supervision of variable product sales. Discussion topics include guarantees and other contract provisions, disclosures and illustrations. Panelists address the background and current status of amendments to NASD Rule 2821 and firm practices in the application of the rule. Proposed revisions to the Variable Product Guidelines for communications with the public are also covered.

 

• Marc Cohn, Metropolitan Life Insurance Company

• Larry Kosciulek, FINRA
• Joe Savage, FINRA (moderator)
• Scott Stolz, Raymond James Financial, Inc.

 

Product Training: Non-Conventional Instruments - Institutional Focus

 

This instructor-led session highlights features, characteristics and development of non-conventional instruments such as asset-backed securities (ABS), credit-default swaps (CDS), variable rate debt obligations (VRDO), covered bonds and others that are gaining-or regaining-prominence in the US institutional marketplace. Topics include the structure, liquidity and risks for these products.

 

• John Hennessy, FINRA (instructor)

 

4:15 pm - 4:30 pm	Break
4:30 pm - 5:30 pm	Plenary Session

 

Ask FINRA Senior Staff

 

FINRA's senior staff address questions on the examination program, enforcement, rule-making and other regulatory and compliance issues. Firm-specific questions can be discussed one-on-one with regulatory experts during the conference's Office Hours.

 

• Bob Errico, FINRA

• Linda Fienberg, FINRA
• Tom Gira, FINRA
• Marc Menchel, FINRA
• Susan Merrill, FINRA
• Tom Selman, FINRA
• Dan Sibears, FINRA (moderator)
• Grace Vogel, FINRA

 

5:30 pm - 7:00 pm

Reception

 

Friday, May 8, 2009

 

7:00 am - 8:00 am	Continental Breakfast
8:00 am - 9:15 am	Concurrent Sessions IV

 

Arbitration Case Trends

Panelists discuss current arbitration case trends and their implications as leading indicators of future arbitration activity. The session also addresses procedural and rule changes that could impact firms in 2009.

 

• Linda Fienberg, FINRA (moderator)

• Anne Flannery, Morgan Lewis
• Pat Sadler, Sadler & Hovdesven, P.C.

 

Managing Risk in Changing Markets

 

Industry experts address lessons learned about risk management, internal controls and the implications of failing to adequately assess risk. Specific areas for discussion include risk management and the relationship among liquidity, leverage and capital adequacy, and managing the risk sensitivities of complex financial instruments.

 

• Gary DeWaal, Newedge

• Dan Ryan, Pricewaterhouse Coopers LLP
• Grace Vogel, FINRA (moderator)
• Bill Wollman, FINRA

 

Cross-Enterprise Supervision

 

This session addresses how firms with multi-line businesses manage their regulatory and compliance programs across subsidiaries, entities and/or business lines. Regulators join with industry representatives to discuss issues such as balancing regulatory standards across financial sectors to achieve consistent investor protection, regulators' expectations for supervisory practices, licensing practices and supervision of outside securities transactions.

 

• Joe Castro, Fidelity Investments 

• Bob Errico, FINRA (moderator)
• Don Steel, Planned Investment Co., Inc.

 

Electronic Communications

 

This session addresses regulatory implications and restrictions, and provides practical guidance on how to monitor and supervise Web sites, chat rooms, bulletin boards, blogs and social networking sites. Industry panelists discuss what their firms do and do not allow, how they monitor activity, and the types of applications they use for monitoring and retention.

 

• Alexander Gavis, Fidelity Investments

• Neal Nakagiri, NPB Financial Group, LLC
• Amy Sochard, FINRA (moderator)

 

9:15 am - 9:30 am	Break
9:30 am - 10:45 am	Concurrent Sessions V

 

Complying with US and UK/EU Regulations

Industry panelists discuss how their firms manage the interaction between rules applicable to US parent firms and those rules governing securities business in the UK and Europe. The discussion encompasses credit market issues, market abuse and enforcement, conflicts, best execution, and other topical issues to compare and contrast various rule distinctions.

 

• Eric Gallinek, Deutsche Bank

• Michael Kulczak, FINRA (moderator)
• Robert Mass, Goldman Sachs Group, Inc.
• Allen Meyer, Credit Suisse Group

 

Trade Surveillance in the Current Market Environment

 

Industry experts discuss trading surveillance and other market-related issues in light of the recent economic and market environments, including insider trading, market manipulation and best execution. Other topics include firm practices and compliance issues related to direct market access, trading of complex and derivative products and short-selling. Regulatory and rulemaking aspects of these, and other areas, are also highlighted.

 

• Tom Gira, FINRA

• Steve Joachim, FINRA (moderator)
• Greg Johnson, J.P. Morgan Securities, Inc.
• John Malitzis, NYSE Regulation

 

Cost-Basis Reporting

 

The Emergency Economic Stabilization Act (the TARP legislation) requires that brokers report the cost basis and holding periods associated with sale of securities to the IRS and to taxpayers on Form 1099-B. Panelists explain implementation issues, including calculation, account transfers, and reporting.

 

• Karen Botvin, The Vanguard Group

• Eric Moss, FINRA (moderator)
• Claire Santaniello, Pershing LLC
• Nicole Tanguy, Citigroup Global Markets, Inc.

 

Cyberfraud

In this session, panelists discuss what you need to know about potential security threats and cyberfraud, and the questions you should ask your technology staff, vendors and clearing firm to help protect against unauthorized access to your firm and customer information.

 

• Jerry Brady, Morgan Stanley 
• Roland Cloutier, EMC Corp
• Mark Rippe, FINRA (moderator)
• Kevin Swindon, FBI

 

10:45 am - 11:00 am	Break
11:00 am - 12:00 pm	Keynote Speaker: The Honorable Barney Frank, Chairman, House Financial Services Committee
12:00 pm - 12:15 pm	Break
12:15 pm - 1:15 pm	Lunch and Plenary Session

 

Supervision Rules in the Consolidated Rulebook

 

This session addresses the status of proposed FINRA rules governing supervision and supervisory controls. FINRA counsel outline key provisions of the rules and discuss with industry panelists the implications for firm supervisory practices and procedures. A box lunch will be provided to session attendees.

 

• Patricia Albrecht, FINRA (moderator)
• Mark Hansen, State Street Global Markets, LLC
• Pam Ziermann, Dougherty & Company

 

1:15 pm

Conference Adjourns

 

Submit Questions in Advance

Email your advance questions for conference speakers to us by Friday, May 1.