Exam Deficiencies for Private Fund Advisers

The SEC Division of Examinations, formerly known as the Office of Compliance Investigations and Examinations (OCIE), provided a discussion of key risks and trends in its 2021 Examination Priorities document.

The document highlights the importance of a strong compliance program within the firm, emphasizing “that compliance programs, CCOs and other compliance staff play critically important roles at firms. Indeed, culture and tone from the top are key.”

With an increasing number of staff of registered firms working remotely because of the COVID-19 pandemic, emphasis will continue around the compliance and operational challenges that may arise, especially in the area of supervision. Remote work may lead to new technologies and workflows or different products or services that may result in conflicts of interest, which could require new disclosures and mitigation.

Gary Gensler’s April confirmation as Chair of the SEC is expected to usher in an era of stricter oversight and enforcement. Focus areas for private fund advisers outlined in the exam priorities include Regulation Best Interest and Form CRS, firms’ disclosures regarding their conflicts of interest, including those related to fees and expenses, information security and operational resiliency, and the implementation and integration of RegTech in firms’ compliance programs.

Many of the issues highlighted in the document are perennial areas of focus for the SEC, but the emphasis on Environmental, Social and Governance (ESG) is a new priority for 2021. Watch the on-demand webinar SEC Guidance on ESG: The Impact on Your Compliance and Due Diligence Programs for practical guidance on what this means for Compliance right now.

Be prepared for SEC exams in 2021.

 Private fund advisers face unique regulatory risks.

 Join MCO and Foreside for the on-demand webinar Exam Deficiencies for Private Fund Advisers. During this presentation Curtis Flippen and Craig Moreshead discuss common issues and deficiencies that fund advisers experience during SEC exams and provide practical tips to avoid them.

 Specific topics covered include:

• Conflicts of Interest
• Allocation Fees/Expenses
• Compliance Programs
• Valuation

Watch Now!

Do you have a scheduling conflict? Register and we’ll send you the link to the recorded session. 

Failure to properly file Form PF can result in regulatory action. 

MyComplianceOffice helps financial services firms reduce their risk of misconduct by identifying and mitigating conflicts of interests across firm transactions, employees and third-party relationships. Our comprehensive approach ensures that firms have a clear view of potential risk and can remedy conflict before it becomes a problem.