Exams of Non‑U.S. Advisers: The SEC’s Authority and Trends (Part One of Three)

All investment advisers that are registered with the SEC – including those that manage private funds – are subject to examination. Not even a global pandemic could stop the SEC’s Division of Examinations from conducting 2,128 exams in fiscal year 2020. Of course, those exams were largely conducted remotely, and the success of remote exams may have contributed to the increase in exams of non‑U.S. investment advisers that some have observed over the last year or so. This first article in a three-part series discusses the SEC’s authority to conduct examinations of non‑U.S. advisers and the recent trend of those advisers being examined more. The second article will compare SEC exams of U.S. advisers to exams of non‑U.S. advisers, as well as exams conducted by the SEC versus by foreign regulators. The third article will provide practical tips for non‑U.S. advisers that may face an SEC exam for the first time. See “Recent Speeches Outline the Ethos, Direction and Priorities of the SEC’s Division of Enforcement Under Gurbir Grewal” (Nov. 16, 2021); and “SEC Compliance and Enforcement Expectations for Private Funds Under Chair Gensler” (Jul. 13, 2021).

To read the full article

Continue reading your article with a PELR subscription.