How Fund Managers Can Prepare for SEC Remote Examinations During the Coronavirus Pandemic

Fund managers and many other companies throughout America have been forced to adjust to operating fully remote workforces for the past several months. The SEC’s Office of Compliance Inspections and Examinations (OCIE) is no different, as it has leveraged the extensive resources it has built in recent years – i.e., its National Exam Analytics Tool and the Office of Risk and Strategy – to continue its remote examinations of fund managers. Although they are similar to traditional, in-person exams in many respects, different nuances to remote exams can catch fund managers off-guard. To help fund managers prepare for potential remote exams by OCIE during the pandemic and mitigate certain of their inherent risks, the Private Equity Law Report interviewed various individuals – including law firm partners and fund manager GCs/CCOs – with experience navigating OCIE remote exams. This article delineates the differences between remote and in-person exams; discusses the risks of a remote exam; and identifies best practices for a fund manager preparing for and enduring a remote exam. See our two-part interview with a former OCIE private funds examiner: “Forecasts Potential SEC Response to Fund Manager Efforts During the Coronavirus Pandemic” (Apr. 14, 2020); and “Explores Compliance Issues Introduced by the Coronavirus Pandemic and Mitigation Tips” (Apr. 21, 2020).

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