SEC3 Outlines Questions to Consider for SEC Exam Preparedness

SEC Compliance Consultants recently published a tipsheet for SEC Exam Preparedness that covers what to do before Commission staff come in as well as what to do once an entity is notified of an exam. The tipsheet also highlights new factors to consider in 2023 including the Commission’s focus on new investment advisers, policies and procedures, and LIBOR transition-related issues. SEC3 notes that funds should focus on disclosure, performance metrics, and “adequate resources to comply with securities laws in this changing regulatory environment.” There should also be a focus on books and records, including consistency among documents. The tipsheet also recommends mock audits, training pertinent staff on what to expect during an exam, and “correct known problems or be in the process of correcting them.” The tipsheet also contains advice for when the SEC staff begin the exam such as ensure your staff take notes at relevant meetings with SEC staff, discuss protocols, and notify key service providers.

Click here to read the SEC3 tipsheet for SEC Exam Preparedness.