Mock SEC Examination To Test The Reliability Of Your Firm’s Compliance Program

SEC has extended its regulatory assessment program significantly. Moreover, it still persists to reinforce its risk-based approach of National examination program. SEC has been authorized by the federal securities law to assess all records maintained by the SEC-registered firms. The examination can be conducted whenever the SEC deems crucial or is appropriate in public interest or to protect the investors.

SEC examination efforts relates to particularly –

  • Identify potential violations of securities laws & regulations.
  • Promote strong compliance & risk management practices.
  • Supply SEC with information related to effective implementation of their existing rules.

Test the Reliability of compliance program

Many companies are responding by focusing more on compliance & risk management as well as undergoing mock SEC examination. Having 3rd party assessment on the designed risk management processes enables the firm to address the weak areas, before it gets uncovered in SEC’s real-examination.

What mock SEC examination does?

Mock examination evaluates your capabilities and awareness of the firm’s key personnel, records, and processes. It determines, if your firm’s obligation towards compliance is sufficient to ensure successful result, when examined next. You can contact for regular mock SEC examination and always be prepared.

What to look forward to?

The mock SEC exam of your firm will be on the basis of current SEC demand list.  To access accurately, the 3rd party mock examiners will conduct this assessment in three phases.

Off-site review

Just like the SEC, a list of compliance documents will be demanded to perform a review and analysis of initial information. The mock examiners will study how your firm complies with business practices and use this knowledge to prepare you for on-stage examination.

On-site Mock exam

The mock examiners will visit your firm and perform interviews as well as check the operation processes to evaluate performance of senior staff, particular personnel, and overall company. Just like real-SEC examination no feedback is provided during exam but a wrap-up meeting for all the participants will be conducted. They will provide loop holes and suggestions as well as training to those members involved in this mock exam.

Off-site examination report

You will be provided with a written report on areas that SEC identifies the major areas to concentrate.

Applicable current focus areas

  • Gap analysis of the company’s compliance documents
  • Trading practices
  • Portfolio management processes
  • Proprietary trading activities of the consultant
  • Personal trading actions of supervised persons
  • Safeguarding of customers assets from improper use by consultants
  • Disclosures made to regulators, investors, and clients
  • Marketing advisory service
  • Creating needed records, their maintenance, security from unauthorized changes, application or destruction
  • Processes to value customer holding and charge fees on the basis of those valuations
  • Business continuity plan
  • Protection for confidentiality of customers information and records

The report will be focused on the above major areas. This written report will help to detect gaps or deficiencies in your company’s compliance program. Thus implement enhancement steps to your compliance program and get to know necessary resources that can mitigate firm’s risk.

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