Category Archives: Regulatory Exam

California Securities Regulation Division Is Currently Conducting Online Examinations of State Registered Investment Advisers

October 25, 2018

RIA Compliance Consultants was recently made aware that the California Department of Business Oversight – Securities Regulation Division is conducting “Online Written Examinations” of investment adviser firms registered with the State of California regardless of whether or not the investment adviser firm has offices located in California.

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As Regulators Prepare to Conduct More Examinations, Registered Investment Advisers Should Make Sure They are Prepared

May 29, 2013

Registered investment advisers must make sure that they have strong compliance programs in place and they are prepared for regulatory examinations as regulators expect to increase the number of examinations being conducted.  In recent testimony before the U.S. House of Representatives Committee on Financial Services, Chairman Mary Jo White of the U.S. Securities and Exchange Commission (“SEC”) discussed some of the recent activities of the SEC.  The testimony addressed several key areas of SEC oversight and focus including the areas of SEC enforcement and the SEC’s inspection and examination program.  During the testimony, Chairman White stated, “the [SEC] needs to further strengthen the enforcement and examination functions of the SEC.  Strong enforcement of the securities laws is necessary for investor confidence and is essential to the integrity of our financial markets.  Successful enforcement actions result in sanctions that deter and punish wrongdoing and protect investors, both now and in the future.  Similarly, our National Examination Program is critical to improving compliance by regulated entities, preventing and detecting fraud, and monitoring market risks.”

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SEC to Conduct Presence Exams for Newly Registered Investment Advisers

March 06, 2013

In a release issued by the SEC on October 9, 2012, the U.S. Securities and Exchange Commission (“SEC”) announced “Presence Exams” for certain newly-registered investment advisers (investment advisers registered after July 21, 2011). The presence exams are to be conducted by SEC’s Office of Compliance Inspections and Examinations (“OCIE”) through the new National Exam Program (“NEP”) initiative. These “focused, risk-based examinations” will be conducted of investment advisers to private funds registered with the SEC.  These Presence Exams will take place over a two-year period and have three primary phases:

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