The General Counsels, Chief Compliance Officers and the compliance staff members of many registered investment advisers can soon expect the stressful experience of a U.S. Securities and Exchange Commission (“SEC”) examination.
The prospect of being subjected to an SEC examination appears highly likely for those advisers that have yet to be examined based on (i) the SEC’s formation of a new private fund unit within the Office of Compliance Inspections and Examinations (“OCIE”) that will focus on hedge funds and private equity funds and (ii) the OCIE’s National Examination Program’s Examination Priorities for 2017.
The OCIE has reiterated its commitment to promptly conduct “Presence Exams” of a significant percentage of fund advisers who registered for the first time after Dodd-Frank and examinations of “Never-Before Examined Advisers” that have never been examined but are not part of the Presence Exam initiative.
Duff & Phelps has identified the key focus areas and best practices for advisers to address prior to an examination to most effectively obtain a positive outcome. Based on our experts’ extensive industry experience and having successfully assisted with numerous SEC examinations throughout their careers, we have devised a methodical approach to preparing for and navigating any SEC examination.
To prepare your firm for a virtually inevitable SEC examination, we offer a comprehensive SEC mock examination service that includes dispatching an experienced team of professionals to your office to guide your firm through the examination process and to share best practices with your staff members. This competitively priced SEC mock examination includes the following:
Interview preparation for key staff members based on questions asked during actual SEC examinations
Guidance on how staff members should conduct themselves while the SEC examiners are on site
Review and critique of compliance documentation and testing performed by the adviser
Exit interview describing our findings and recommendations
Customized written report describing our findings and recommendations, if requested