Are Your Disclosures and Compliance Programs SEC Compliant?

The Division of Examinations (“Division”) recently published a risk alert to highlight observations related to examinations of mutual funds and exchange-traded funds (“funds”) practices and compliance in certain areas that may have an impact on retail investors. The alert includes various examples of deficiencies and strong compliance practices observed by the Division in order to assist advisers with identifying any weaknesses and gaps in their own compliance programs.

The examinations focused primarily on:

• The effectiveness of the compliance policies and procedures of the funds and their advisers
• Disclosures by the funds to investors and fund governance practices

Advisers Should Consider the Below Questions to Determine Whether the Compliance Program is Reasonably Designed and Effective to Meet Obligations in These Areas

How Kroll Can Help

Financial services firms' regulatory and compliance programs should be complete, effective, and designed to withstand the most stringent regulatory reviews without disrupting the business. In the U.S., a strong compliance program is particularly significant as the SEC continues its intensive investigative and enforcement efforts. The Kroll Financial Services Compliance and Regulation team has first-hand practical knowledge and experience gleaned from years of providing practical start-up and registration assistance, developing effective compliance and regulatory programs, and assisting with regulatory examinations and investigations. Contact Ken Joseph, Peter Wilson or Anna Povinelli now to discuss how we can support your compliance team.