Industry regulatory experts report that the frequency of SEC exams has been steadily increasing under its Chairman Gary Gensler. However, more recently and within the last two months, a noticeable surge in the number of exams seems to have occurred, comments FrontLine Compliance Founder and President Amy Lynch. This may be attributed to the time saving achieved by the SEC not traveling to firms’ offices combined with Gensler’s aggressive agenda now getting off the ground. Private funds and both newer and established firms are dealing with exams, and expect that trend to continue, adds Ms. Lynch. The SEC is focused on several of its hot topics, including ESG concerns and the lack of monitoring to prevent insider trading. See Hedge Fund Alert (subscription required), “SEC Ramps Up Scrutiny; ESG a Priority”
Also see related UpFront post, “FrontLine is once again named a top hedge fund compliance firm (Hedge Fund Alert)”
