Prepare for More On-Site SEC Exams in 2023
News and Alerts
Brief Introduction
The Deputy Director of the SEC Division of Examinations has verbalized the intention to significantly increase the number of On-Site Examinations for the year, 2023.
As firms brace for an increasingly aggressive regulatory agenda from the SEC, it is vital that Firms continue to monitor their compliance program.
Additionally, it would be prudent to prepare and consider getting a Mock SEC Exam in the case that there has been a time lapse since your last SEC Examination, or you have never been examined before.
Updates from the SEC on Exams
- Chairman Gensler indicated that the shift from mostly Off-Site Exams to On-Site Exams will occur at the end of March.
- According to Ignites on March 23rd, the SEC is expected to return to the office next week two days per pay period, hinting the trend back to On-Site Examinations is approaching.
- The Deputy Director mentioned that the SEC must use substantial resources to reach their regulatory goals, which would include significantly more on-site exams than previous years during the COVID pandemic.
- Vigilant has observed that in January 2023, the New York Private Fund Unit conducted an On-Site Examination of a Private Fund RIA.
How to Prepare for an SEC Exam?
- Hire an Industry Leading Compliance Firm to conduct a Mock SEC Exam.
- Review your policies, procedures, documentation, and cybersecurity for potential weaknesses that could arise during a real SEC exam.
- Continue to test your policies and procedures to ensure that employees understand regulations and can produce documents that the SEC are likely to request, promptly.
- Interview your associates with questions the SEC will likely ask during an on-site visit.
- Consult industry specialists to help your Firm maintain a culture of compliance.
Vigilant’s Conclusion
As the SEC increases Examinations in 2023, Firms should move away from ad hoc compliance.
It is vital that firms spend the necessary resources to ensure their compliance departments are both well supported and well advised.
Vigilant leverages 370+ years of collective industry experience to help Firms prepare for the chance that the SEC comes to their door.
With a host of compliance solutions tailored to your business needs, we can partner with you to let you focus on your business goals.