What advisers can expect from an SEC exam - Investment News

“The aggressive policy of the SEC is unlike anything I have ever seen in 30 years of doing this,” said Tom Giachetti, chairman of the securities practice group at the law firm of Stark & Stark. “Even the letters to firms are accusatory and all the while the threat of enforcement is held over them.” 

Knowing what to expect and preparing for the week-long visit can make the exam process less painful, experts said. On the flip side, avoid providing lackadaisical answers to staff questions or trying to tell examiners what they should review and whom they should talk with.


Firms' cybersecurity policies and practices are among the issues SEC examiners are likely to ask about — and find fault with. 

The majority of advisory firms the SEC staff examines are deficient in cybersecurity, and it's often because there's opportunity for potential breaches from human beings, Ms. Esfandiary said. MORE


Mark Brown