A new Risk Alert (“the Alert”) focused on newly-registered SEC investment advisers has been issued by the Division of Examinations (“EXAMS”). This second Risk Alert of 2023 discusses Staff findings from examinations conducted on newly-registered advisers. The term “newly-registered adviser” is not defined by the SEC but is generally believed to be an entity registered as an adviser with the SEC for no more than one year. EXAMs stated that it uses these examinations to…
The highly anticipated 2023 SEC Examination Priorities statement from the Division of Exams (“EXAMS”) was released last week. At least the timing was an improvement over last year, when the priorities were not released until late March and well into the examination year. The 2023 focus list is not exactly a surprise based upon recent Staff speeches and rulemaking initiatives. It provides written confirmation of what the industry has suspected the SEC will pursue with…
A recent Risk Alert (the “Alert”) issued by the SEC’s Division of Examinations (“EXAMS”) discusses how both investment advisers and broker-dealers are failing to meet the requirements under Reg S-ID regarding the prevention of identity theft. The Alert summarizes the various deficiencies found during examinations of broker-dealers and investment advisers. Although the Alert is quite general in its discussion, it provides insight into what the Staff is looking for in Reg S-ID Programs (the “Programs”)…
A recent Risk Alert (the “Alert”) issued by the Division of Examinations (“EXAMS”) demonstrates a new tactic for the SEC. In its first ever Alert on the newly to be enforced Marketing Rule, the SEC is warning firms to be ready for an examination. Typically, EXAMS issues a Risk Alert after it has conducted enough exams to see patterns of non-compliance. However, in this case, they are taking a proactive approach and warning firms ahead…
A recent Risk Alert (the “Alert”) issued by the Division of Examinations (“EXAMS”) addressed Staff findings and several areas of concern that the SEC has regarding misuse of Material Non-Public Information (“MNPI”) by registered investment advisers. The Alert came shortly after the SEC’s 2022 Examination Priorities (“Priorities Letter”). While MNPI concerns were not explicitly mentioned within the Priorities Letter, it appears the Staff felt the topic should be addressed separately.
The Alert speaks to…
