Doug Cornelius on compliance for private equity real estate
Since 2013, the Securities and Exchange Commission’s Division of Examinations has published its annual examination priorities to inform investors and the industry about key areas where the Division intends to focus resources. You can assume those area areas that the Division believes present the highest risk areas to investors and the markets. Last year marked…
In a surprisingly early announcement, the Securities and Exchange Commission’s Division of Examinations has released its 2024 examination priorities just two weeks into the start of its fiscal year. I’m used to seeing this released months into the fiscal year. “Since the publication of our fiscal year 2023 priorities approximately eight months ago, we have…
The Securities and Exchange Commission tries to be transparent about the areas of examination. The Division of Examinations publishes its exam priorities each year. Of course, in practice it may vary from region to region and examiner by examiner. A new risk alert focuses on what an registered investment adviser should expect from an exam….
The Division of Examination released a risk alert on additional areas of emphasis during examinations focused on the new Marketing Rule (Rule 206(4)1): Examinations Focused on Additional Areas of the Adviser Marketing Rule. This is identified as a follow up to the September 19, 2022, Risk Alert describing the initial areas of review related to…
The Securities and Exchange Commission’s Division of Examinations has published its 2021 examination priorities. The big headline is a greater focus on climate-related risks as part of information security and operational resiliency. “Building on the efforts noted above concerning our business continuity plan outreach related to the pandemic, the Division will shift its focus to…
The SEC’s Office of Compliance Inspections and Examinations issued a new Risk Alert: Observations from Examinations of Investment Advisers Managing Private Funds. OCIE highlights three areas of noncompliance in the Risk Alert: conflicts of interest, fees and expenses, and misuse of material nonpublic information. OCIE lays out some of the conflicts that are particular to…
Early this year, the SEC’s Office of Compliance Inspections and Examinations announced its 2020 examination priorities. One item was “Risk, Technology, and Industry Trends.” One risk mentioned was LIBOR transition. [A]s our registrants and other market participants transition away from LIBOR as a widely used reference rate in a number of financial instruments to an…
The Securities and Exchange Commission’s Office of Compliance Inspections and Examinations announced its 2020 examination priorities. OCIE has been publishing its examination priorities annually in an effort to enhance the transparency of its examination program and to provide insights into its approach to examination. With its current risk-based approach, the exam priorities highlight areas that OCIE…
In 2017, the SEC’s Office of Compliance Inspections and Examination conducted exams of investment advisers that previously employed, or then currently employed, any individual with a history of disciplinary events. According to a just released Risk Alert, this was the Supervision Initiative. The initiative examined over 50 advisers, with a total of $50 billion in…
The SEC’s Office of Compliance Inspections and Examinations has issued a risk alert announcing its intention to conduct a series of examination initiatives focused on issues affecting certain registered investment companies and investment advisers. According to the Risk Alert, examiners have six initiatives: Index funds that track custom-built indexes Smaller ETFs and/or ETFs with little secondary…