SEC routine books and records exams purpose is to “improve compliance; prevent fraud; monitor risk; and inform regulatory policy.” The exams are administered by the SEC’s Office of Compliance, Inspections and Examinations (OCIE) and generally focus controls and procedures as they pertain to each investment adviser’s individual risk. Testing and reviewing a firm’s compliance health periodically is crucial in surviving an exam.
WB is an experienced compliance consulting firm that recognizes that regulatory audits are a regular and needed necessity of our business. WB specializes in preparing clients to survive all regulatory audits through its SEC Mock Audit Services team. Our team is a seasoned group of compliance professionals who have participated in many regulatory audits. Following your WB exam review your firm will be prepared and comfortable with what is expected when dealing with a regulatory audit. In addition, WB will identify areas of deficiency prior to any examination.
WB will conduct a Mock Audit designed to determine the adequacy and sufficiency of the Client’s compliance program:
· Present a formal request letter to the designated client
· Work with the Adviser’s Chief Compliance Officer to identify and review information the SEC may request in a routine SEC Examination of the Client’s books and records
· Review all applicable policies and procedures to identify potential gaps with respect to applicable compliance rules and regulations
· Conduct on-site meetings with relevant Client personnel to ascertain whether the Client’s compliance program is being implemented according to applicable rules and regulations
· Review service providers and the due diligence that that is performed
· Interview select employees on their roles and responsibilities
· Identify any gaps and present a plan to rectify
At the conclusion of its examination, WB will issue a written report of its findings that includes general recommendations for enhancement with respect to the Client’s compliance program, WB’ conclusion as to the overall adequacy and effectiveness of the program and an assessment of the Client’s readiness for an SEC examination.
Regardless of your firm’s experience or whether you have been through a previous exam, a Mock SEC Audit by our SEC Mock Audit Services team is an excellent way enhance your compliance program.