Kinetic Partners Compiles SEC Exam Checklist

Kinetic Partners has released its ‘SEC Examination Checklist’, for use by compliance and risk departments of investment advisory firms and alternative investment fund managers in preparation for examination by the US Securities and Exchange Commission (SEC).

The professional services firm says that it offers a summary overview of its own proprietary core checklist, designed to provide firms with an outline of the items the SEC will be scrutinising during the examination and the metrics by which the SEC will be measuring competency.

The checklist covers seven key areas of SEC review including:

  •  General firm information.
  •  Compliance programme functions and controls.
  •  Private funds.
  •  Portfolio management.
  •  Financial and accounting.
  •  Management and employee preparation.
  •  Technology.

Kinetic Partners is also offering a single-day SEC Examination prep service, available to any firm, which will provide comprehensive training, as well as its full proprietary checklist in preparation for an SEC examination.

“There has been a substantial shift in the regulatory environment over the last several years,” said Doug Shulman, director with Kinetic Partners’ US regulatory compliance practice. “In order to meet this higher level of regulatory scrutiny, firms must prepare more thoroughly for examinations.

“There are a host of new SEC registrants due to requirements under the Dodd-Frank Act, and many of these newly-registered firms have yet to face an SEC examination or may have only undergone a preliminary, or ‘presence,’ exam. Firms should anticipate longer, more detailed examinations conducted by highly skilled SEC staff members – and will need to dedicate the proper time and resources to properly prepare in order to avoid negative examination results and, in a worst case scenario, an enforcement action.”

Christopher Lombardy, US head of regulatory compliance at Kinetic Partners, added: “Firms are facing a much higher level of regulatory scrutiny from the SEC in today’s environment. As a consequence, firms need to ensure they have strong compliance procedures and infrastructure in place.”

A free copy of the summary checklist can be obtained from Harry.Laverty@kinetic-partners.com, who is also the contact for scheduling the single-day SEC examination preparatory course.

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