The SEC may conduct unannounced “surprise” exams of firms and Founder and President Amy Lynch discusses how registrants can stay ready for this type of exam. She explains that routine activities such as internal testing and addressing compliance gaps should be occurring regularly to keep the firm prepared just in case the SEC decides to conduct a surprise exam. See IGNITES (subscription required), “Surprise! The SEC Revives Unannounced Exams“…
Founder and President Amy Lynch offers insight on how the SEC will deal with the new Form ADV “other-than-annual-amendment” firm filings that occur between October 1, 2017 and March 31, 2018. By allowing advisers to input “0” figures for the new questions within the Form, plus adding a required explanation in the Miscellaneous section of Schedule D, Ms. Lynch cites this change by the SEC as helpful by reducing the additional workload of firms to…
This week the SEC’s Division of Investment Management (“IM”) released an Information Update regarding new Form ADV. As of October 1, 2017, the online system (IARD) for Form ADV filings will be modified to account for the changes to Form ADV as required by Advisers Act Release No. 4509, issued on August 25, 2016. Most of the changes come under Section 5 of Part 1A, Schedule D, and Section 7B for private funds.
The Staff…
Earlier this week, the SEC’s Office of Compliance Inspections and Examinations (“OCIE”) released a Risk Alert on cybersecurity examination findings from its Cybersecurity 2 Initiative. This Initiative was more in-depth than Cybersecurity 1 and focused on how firms implemented data security controls. Examiners tested firm procedures to determine if those procedures could identify and mitigate actual or potential security breaches. Exams focused on the following areas:
Governance and risk assessment
Access rights and controls
Data…
Comments by Founder and President Amy Lynch are featured in a story looking at likely changes in rulemaking for funds under the new SEC leadership. Ms. Lynch provides comments on alternative ways the SEC’s Division of Investment Management may approach regulation, including measures such as “reregulation: rehashing the existing rule book” and greater reliance on issuing guidance to stress more stringent compliance is required for a given rule. See Law360 (subscription required), “Funds Look For …
