Category: Examinations and Audits

The Five Most Frequent Compliance Topics in SEC Exams

The SEC’s Office of Compliance Inspections and Examinations published a list of the five compliance topics most frequently identified in deficiency letters that were sent to SEC-registered investment advisers. The five are actually the bulk of advisor compliance requirements. It’s the examples in the five topics that are the most useful indicators. Compliance Rule Compliance

Red Hot SEC Exam Topics

IA Watch presented a webinar: Red Hot SEC Exams Topics in 2017, Plus Exam-Prep Steps from Peers Who’ve Survived Recent Exams. The presenters were Fred Shaw, Principal/Director of Compliance, Hamilton Lane Adam Reback, CCO, J. Goldman & Co Chuck Daly, Principal, Constellation Advisers Michelle Martin, CCO, Longfellow Investment Management These are my notes: Even though there

SEC’s 2017 Exam Priorities

Last week the Securities and Exchange Commission issued the 2017 priorities for the Office of Compliance Inspections and Examinations. There are five main items on the list, plus some others. Private funds are still on the list. Retail Investors – Roboadvisers wrap fee programs ETFs – redemption and sales practices Never-before examined Recidivist Multi-branch -(Are

Bad Boys The SEC is Coming For You: Supervision Initiative

The SEC’s Office of Compliance Inspections and Examinations’ 2016 Examination Priorities included a focus on individuals with a history of disciplinary events. That priority has been put into action. The SEC issued a new Risk Alert on upcoming examination. OCIE is undertaking an initiative to examine the supervision practices and compliance programs of registered investment

Rethinking Your SEC Introductory Presentation

I was chatting with a compliance examiner from the Securities and Exchange Commission and heard that the format for private fund exams had changed. Given the complexity and diversity of business models for private funds, the SEC is trying to narrow the scope of its examination. Presumably to help in that effort, the SEC examiners

SEC Exam Results

Securities and Exchange Commission Examiners are beefing up their staff and are more likely than ever to show up on your doorstep. So what are the likely outcomes? The SEC recently announced that it’s shifting resources from the broker-dealer side over to the investment adviser side. It’s leaving the broker dealers for FINRA and putting

US Private Equity Fund Compliance Guide

If you are looking for something to read during the long Thanksgiving Weekend or a great holiday present, pick up a copy of the newly released The US Private Equity Fund Compliance Guide, Volume III. PEI Media just released this follow up that updates the original 2012 edition with the ongoing review and actions of

SEC Meet and Greet – Part 2

Last week I was able to share with you the introductory letter from a firm that recently registered with the Securities and Exchange Commission and quickly received a meet and greet request. That same reader was nice enough to share his experience with me and the readers of Compliance Building. The SEC had a four

SEC Meet and Greet

The Securities and Exchange Commission tackled a large group of new advisers, Post-Dodd-Frank, with the Presence Exam initiative. Then tackled a backlog of exams with the never-before examined initiative. The SEC stated that it wanted to start reaching out to advisers soon after they register to get on top of things from the onset. A

Preparation for SEC Examinations

Ascendent Compliance put together a presentation on Preparation for SEC Examinations. Last year the SEC examined 9% of advisers which represent 25% of the RAUM. Of those exams, 87% had deficiencies, 25% had significant findings, and 14% were referred to enforcement. The SEC has implemented a new telephone assessment for offsite remote exams. The examiners