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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.

Read more: Two SEC Exam Request Lists - 2012

 

OCIE Exam Process Overview

Office of Compliance Inspections and Examinations Process Overview.

Read more: OCIE Exam 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.

Read more: SEC Exams Tips

 

Newsletter

Get the latest compliance news and insights - delivered weekly. The SEC3 Communique covers all compliance topics. CCO3 focuses on Mutual Fund CCO topics.
tip: check both to keep informed!

Communiques

Permanent Bars as an Effective Deterrent

At the SEC Speaks 2015 Program on February 20, 2015, two SEC Commissioners gave their personal remarks on the Commission seeking permanent bars on wrongdoers to prevent further misconduct by... read more »

Adviser Sanctioned for Inadequate Compliance Policies and Procedures

In January 2015, the SEC settled an action against a registered investment adviser who agreed to several findings of violations of the Investment Adviser Act of 1940 including: failure to create... read more »

SEC Highlights Importance of Risk Assessments

The SEC stated in their 2015 Examination Priorities that, as was the case in prior years’ priorities, the Commission will conduct “focused, risk-based examinations”. This guidance confirms that... read more »

SEC Issues Risk Alert with Cybersecurity Sweep Examinations Summary

On February 3, 2015, the SEC released their long-awaited Risk Alert reviewing the results of OCIE's cybersecurity sweep examinations in 2014 that followed their April 2014 Risk Alert on cybersecurity... read more »

SEC Announces Examination Priorities for 2015 - And New Year’s Resolutions for C…

As the SEC has been doing at the start of each year in recent years, the SEC announced its examination priorities for the new year. For 2015, the SEC’s priorities... read more »

Recent SEC Speech Highlights Continued Focus on Private Equity

In her recent keynote address at the Columbia Law School Conference on Current Issues in Securities Regulation (November 21, 2014), Commissioner Kara Stein stressed the importance of transparency in securities... read more »

Events

Dallas CCO Compliance Roundtable

When: March 05, 2015 Where: The Crescent Club | 200 Crescent Court, 17th Floor, Dallas, TX 75201

NSCP Canadian Conference

When: March 4th 2015 (8:00am-4:00pm) Where: St. Andrew’s Club & Conference Centre | 150 King Street West Toronto, Ontario M5H 1J9

Phila Compliance Outreach Seminar

When: December 17th 2014 Where: Drinker Biddle & Reath LLP | One Logan Square, Ste. 2000, Philadelphia, PA 19103