SEC Exam Documents
SEC examinations are always a concern. Understanding how the SEC approaches the traditional routine exams, their current exam focus areas and having an established process to manage an exam can be helpful. We provide this information as an overview. Please select a link below or if you have any questions, feel free to contact us.
SEC Presence Exam Letter
As mentioned in our September 27th Communique, the SEC has started to send a letter to all newly registered advisers of private funds. The letter describes the intentions of the SEC with regards to these private fund advisers.
A copy of the letter can be found here.
SEC Chicago Letter - A precursor for private funds
The SEC seems to be initiating a trend and "pre-screening" managers. An April document request letter to a number of Chicago based advisers offers some insight into this trend. This scaled-down document request shows that the SEC is trying to cover more ground in less time. This trend should be of interest to unregistered private fund managers regarding what they can expect once registered - ensure your ADV Part II, offering documents and promotional materials are consistent and compliant.
Read more: SEC Chicago Letter - A precursor for private funds
Two SEC Exam Request Lists - 2012
An example of recent SEC Long form and SEC Short form SEC Examination Information Request Lists.
OCIE Exam Process Overview
Office of Compliance Inspections and Examinations Process Overview.
The Importance of Risk Assessment and Forensic Testing for Investment Advisers
The National Examination Program (“NEP”) of the Office of Compliance Inspections and Examinations (“OCIE”) of the Securities Regulation Commission (“SEC”) currently stresses a risk-based approach to examinations. NEP is committed to focus its examinations on higher-risk registrants and/or selected higher risk areas of a registrant’s business. This will enable OCIE to better effectively manage its limited resources. Understanding risk assessment and forensic testing is important for Investment advisers - which we cover in this report.
Read more: The Importance of Risk Assessment and Forensic Testing for Investment Advisers
SEC Exams Tips
For your reading pleasure, we present a list of tips for surviving a routine SEC Examination. This list has been compiled by SEC3 employees including ex-SEC examiners and securities attorneys. It is not to be considered all inclusive and is provided to assist registrants with preparing for and managing an SEC examination. Depending on the type of examination and issues that may arise during the exam, a registrant may want to consider additional steps to manage an SEC examination.