Speak To A Live Person: 888.302.4594 Request A Demo

SEC’s Exam Priorities

Sunday, March 17, 2013

The staff of the SEC’s National Examination Program Office of Compliance Inspections and Examinations (“NEP”) has published its examination priorities “to communicate with investors and registrants about areas that are perceived by the staff to have heightened risk.” The staff highlighted the following issues: asset verification and custody including surprise exams and qualified custodians; undisclosed compensation arrangements either paid to an adviser from a product or paid by an adviser to a third party solicitor; performance reporting and advertising including aberrational performance claims and the accuracy of calculations; allocation of investment opportunities especially where advisers manage assets subject to a performance fee side-by-side with other clients; and fund governance including disclosure to fund boards and board oversight of service providers. The staff also identified new and emerging issues of focus: private equity and hedge fund managers newly registered because of Dodd-Frank; how dually registered firms decide whether to provide brokerage or advisory services; and the growing use of alternative products in registered fund structures. The staff makes clear that the priorities listed “are not exhaustive” but that the “NEP expects to allocate a significant portion of its resources throughout 2013 to the examination” of these issues.

Compliance personnel need to take this publication to heart and re-assess where they are at in regards to these exam priorities before the SEC arrives for an exam. Please click here to read the full release.

Red Oak Compliance Solutions is available to help. We can provide guidance on all of your compliance needs. For more information or to request information on how we can help, please contact us.

About Red Oak Compliance Solutions

Red Oak Compliance Solutions is a leading provider of intelligent compliance software, offering a range of AI-powered solutions designed to help firms of all sizes successfully navigate the increasingly complex regulatory landscape. Our suite of 17(a)-4/WORM compliant features offer risk minimization, cost reduction, and process optimization capabilities with features that are designed to evolve with our client’s needs. Our flagship advertising review software enables firms to deliver compliant content to the market with confidence, faster. Our Disclosure Management and Intelligence solution simplifies the management of disclosures, while our Registration Management solution automates and streamlines the licensing and registration process, further enhancing your internal processes. 

  • Categories

  • Get Started