The SEC’s examination priorities for 2014
The Securities and Exchange Commission’s (SEC’s) Office of Compliance Inspections and Examinations (OCIE) recently published the priorities of its National Exam Program (NEP) for 2014 (the ‘2014 Priorities’). The 2014 Priorities focus on areas perceived by the SEC staff to ‘have heightened risk’. The OCIE report addresses both market-wide priorities and priorities that are specific to each of the NEP’s four distinct programme areas: (i) investment advisers and investment companies; (ii) broker-dealers; (iii) clearing and transfer agents; and (iv) market oversight. This client update focuses on the examination priorities that are most relevant to investment advisers to private equity and hedge funds.
Certain of the 2014 Priorities are familiar. For example, over the last few years the SEC staff has repeatedly identified conflicts of interest and custody as examination priorities, and these will continue to be the priority areas of focus in 2014. Certain of the 2014 Priorities are driven by recent regulatory developments. For example, in 2014, OCIE will focus on issues arising from the 2013 adoption of Rule 506(c) under the Securities Act of 1933, which permits issuers to use general solicitations in connection with certain Regulation D offerings.
Private fund managers and other investment advisers, particularly those that have not yet been subject to an SEC examination, should consider the 2014 Priorities in planning their compliance programme objectives in the coming year and conducting the review of their compliance programmes as required by Rule 206(4)–7. Specifically, private fund sponsors should be proactive in identifying potential conflicts of interest, ensure that processes in place to identify potential conflicts are effective and review their disclosures to investors to be certain that the disclosures reflect potential conflicts and how they are addressed…
If you are registered and logged in to the site, click on the link below to read the rest of the Debevoise & Plimpton briefing. If not, please register or sign in with your details below.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from The Lawyer
Briefings from Debevoise & Plimpton
Debevoise & Plimption has published its FCPA Update for January 2013. The lead article concerns anti-corruption compliance in 2013.
The NYSE has updated its Section 303A written affirmation form to reflect the recent modifications to the NYSE listing standards for compensation committees of equity issuers.
Analysis from The Lawyer
Shell legal director Peter Rees is switching litigation control away from external counsel to a unified global team of in-housers