Exam Takeaways: Five Facts About Recent Examination Practices

WHAT HAPPENED?

When the Securities and Exchange Commission initiates an examination of your firm, it is important to be prepared for possible timeframes and requests. Below are some patterns from the SEC’s examination tactics in the last year:

KEY TAKEAWAYS

  1. The time examiners spent onsite often lasted one to four days
  2. Generally, from the SEC’s initial request until the close of the exam took one to nine months
  3. In some cases, examiners requested data from the previous five years
  4. The examination period for an SEC request could be a two- to three-year timeframe
  5. The SEC filed 862 enforcement actions during fiscal year 2019

WHAT DOES THIS MEAN FOR ME?

The SEC could initiate an examination of your firm at any time. Proper preparation for an exam could minimize the possibility of a deficiency letter and decrease the chance of being subject to an enforcement action. Fairview offers SEC examination and compliance support for firms as part of its ongoing compliance administration solution. Contact us with questions about how to prepare for exams and maintaining a comprehensive compliance program.

About the Author:

Fairview®
Founded in 2005 with the goal of developing streamlined solutions for investment advisers, Fairview® is now servicing investment advisers, foundations, and funds with nearly $300 billion in collective assets.