The Securities and Exchange Commission has promised minimally intrusive initial examinations of newly registered private fund advisers, but advisers should prepare for more-thorough reviews, lawyers said at a recent Regulatory Compliance Association forum.
The SEC Office of Compliance Inspections and Examinations (OCIE) is familiarizing itself with the sector's potential risks in order to more effectively examine the independence and infrastructure of a new registrant's compliance program, division director Carlo Di Florio told the RCA that day.
The goal is to determine whether the firm has a culture of compliance and the structure and controls to escalate potential issues before they can cause investor harm, Di Florio said.
But OCIE has become a "quant shop" in assessing a new registrant's potential risks -- by gathering and analyzing a great deal of information about a particular firm before examining it -- said one of the practitioners, Sutherland partner Michael B. Koffler.
The
This article is only available in full to Compliance Complete
North America Subscribers who are logged in.
Please log in to see if you can view this content.
