Preparing for an SEC Examination: Identifying Priorities for 2010
July 22, 2010
1:00 PM – 3:00 PM EDT
Presented by:
Paul Glenn, Investment Adviser Association
William R. Meck, Meck Compliance Consulting
Description: In reaction to the tumultuous market events and scandals of 2009, the U.S. Securities and Exchange Commission has intensified investment adviser examinations as evidenced by the following:
- Increasing surprise examinations
- Rigorous pre-exam due-diligence and aggressive examinations
- Questioning compliance budgets and cost cutting
- Coordinating exams of dually registered firms between both investment advisers and broker-dealers
- Hiring more experienced examiners with special expertise and providing more training
- Focusing on verification of client assets
Examiners are more skeptically probing in new areas, interviewing additional people, asking different questions, and have expanded the scope of requested documents and reports. Legal and industry experts will detail the examination process from the unexpected first notice to the final follow-up, and explain how strong internal controls that are put in place now can help your firm be prepared on short notice for these tougher examinations. Understand what the SEC is looking for and how to manage the examination once the SEC is onsite. Additional topics to be covered include the firm’s rights during the examination process, common problems the SEC encounters during examinations, and effective strategies for dealing with deficiencies found during an examination.
Learning Objectives:
- Understand how the current market and regulatory environments will affect SEC examinations of investment advisers.
- Learn how to handle the new SEC examination focus on confirming client account balances in managed accounts.
- Demonstrate an understanding of the federal and state examination processes from first notice to final follow-up to avoid unnecessary interruption of the firm’s business.
- Become familiar with the SEC Document Request List to increase the firm’s preparedness, minimize retrieval time during an examination and maximize a favorable examination outcome
- Identify SEC current priorities to help the firm focus on areas likely to be examined in depth
- Understand the link between internal controls and SEC examinations
- Learn how to limit regulatory risk on both a personal and firm level
- Receive tips that help support a successful exam outcome
For Whom: Chief Compliance Officers, Auditors, Compliance Staff at all levels, IT personnel, Legal counsel, Management
Suggested Skill Level: Basic to Intermediate
Pre-requisites for participation: No advance preparation or prerequisites are required. However, attendees can benefit by reviewing the Investment Advisers Act of 1940 to become familiar with the structure and terms.
Continuing Education Credits: Recommended CPE Credit: 2
