SEC Examined 11% of Advisers in 2016

The SEC met its stated fiscal year 2016 goal by examining 11 percent of the investment adviser pool. The SEC released the results as part of its annual Summary of Performance and Financial Information.

That number presents a one percent uptick from fiscal year 2015.

Out of the estimated pool of 12,200 investment advisers, that amounts to roughly 1,342 advisers that were covered. Under recently departed SEC Chair Mary Jo White, the SEC shifted personnel from broker exams and explored third-party exams as a way to boost its examination efforts. It’s not known whether that initiative will be pursued by incoming SEC leadership.

However, in January’s National Exam Program Exam Priorities 2017 release, the SEC said it would be expanding its “Never-Before Examined Adviser initiative” to include focused, risk-based examinations of newly registered advisers as well as selected advisers that have been registered for a longer period but have never been examined by OCIE.

Despite the seemingly low number of advisers looked at in 2016, many advisers receive some touch from SEC examiners. During Ascendant’s recent ComplianceCast, “SEC Exam Priorities: What’s Between the Lines & Behind the Scenes,” 74 percent of attendees said their firms have been examined by the Commission.

The SEC cast a wider net on investment companies, examining 17 percent of them in fiscal 2016, exceeding the internal 15 percent projection. Meanwhile, broker-dealers saw 50 percent coverage.

Inside the SEC Exam Program

The SEC’s Exam Program will be a major focus of Ascendant’s upcoming conference on April 3-5 in Naples, Florida, taking attendees through a typical exam journey, highlighting lessons we’ve learned in the field alongside compliance teams and regulators. We’ll go through all the essentials, from how to respond to the SEC’s information requests to handling the in-person interactions to the exit interview and responding to a findings letter. Here’s a look at our SEC Exam track. For more information on the conference, click here.

SEC Exam Track Sessions

  • Special Presentation: SEC Data Analysis of Investment Managers
  • SEC Exam Part 1: First Day Letter & Exam
  • SEC Exam Part 2: What Happens When Regulators Are in Your Office
  • SEC Exam Part 3: The Exit Interview and Responding to a Findings Letter
  • What You Still Want to Know About SEC Exams

Latest Content

Ascendant’s Jason Morton to Speak on RegTech at Strata Data Conference

Alongside technology experts from American Express, Credit Suisse and CIBC, Ascendant’s Jason Morton will speak on developments in regulatory technology at the ‘Fintech Data Day’ at the annual Strata Data Conference on September 26, 2017 in New York. The Strata Data Conference is an annual conference for technology and business professionals who are seeking innovative … Continued

Hurricane Season: How Does your BCM Program Stack Up?

As Hurricane Harvey touches down on U.S. soil and we hope for the safety of the millions in its path, we encourage all firms, even those outside Harvey’s path of flooding and damaging winds, to consider their BCM readiness for such an event. Business Continuity Plans are designed to ensure firms have conducted sufficient advance preparation so … Continued

Surprise, Surprise: SEC Conducting Unannounced Exams

The Boston Regional Office of the SEC has recently conducted roughly 20 unannounced visits to registered investment advisers in the region. This fact, confirmed during the recent meeting of the New England Broker-Dealer and Investment Adviser Association (NEBDIAA), is in keeping with the SEC’s renewed focus on a more robust examination program. While onsite, the … Continued

One Phish, Two Phish, Red Phish, Blue Phish: How to Detect and Mitigate Social Engineering and Ransomware Techniques

Ransomware attacks like WannaCry and NotPetya are increasing in both frequency and damage, routinely making headline news with their abilities to bring down networks of established companies. Yet these cyberattacks typically start by compromising the weakest point in your security chain – people – through simple or complex phishing techniques before spreading to other parts … Continued

DOL Fiduciary Rule Transition Period Extension to 2019 Requested

The Secretary of Labor, Alexander Acosta, made a court filing on August 9 requesting the Transition Period and Delay of Applicability for the Department of Labor Fiduciary Rule be extended from January 1, 2018 to July 1, 2019. This court filing included extending the deadlines for the following Prohibited Contract Exemptions: Best Interest Contract Exemption … Continued

Mailing List

Subscribe to the Ascendant Compliance email list for the latest compliance resources, conferences, ComplianceCasts™, and more.

Loading form...

Contact Us

Ascendant works together with clients to identify and assess critical needs through customized plans. If you need assistance with compliance functions, regulatory services, cybersecurity or technology tools, we’d love to speak with you.