Compliance Considerations for Quantitative Investment Strategies

Quantitative investment strategies present a number of unique considerations for compliance officers: model management processes, human overrides of model-generated signals, correction of coding errors, and backtested performance, among others. Recent SEC enforcement activity has shown that managers who do not adopt robust controls that are well-tailored to address the particular risks associated with quantitative investment strategies could face serious regulatory exposure.

Discussion Topics:

• Model management processes
• Error correction
• Hypothetical performance
• Compliance oversight