SEC risk alert warns investment advisers over exam determinations
By 
Kyle Brasseur2023-09-07T13:26:00
How the Securities and Exchange Commission (SEC) determines which investment advisers to inspect and what areas those examinations typically cover were among subjects addressed in a new risk alert released by agency staff.
The alert, published Wednesday, seeks to help advisers prepare for a potential examination and ensure their compliance efforts meet the expectations of the SEC’s Division of Examinations. It included an attachment detailing the types of initial information SEC staff might request to receive electronically at the outset of an exam.
The SEC’s risk assessment process is dynamic and continuously refined, the alert said, but staff consider certain firm-specific risk factors when selecting advisers for examination, including:
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