SEC has been increasingly used as a regulatory examination program that conducts mock examinations of all the organizational data and records. This is done for the protection of the rights of investors and in the general interest of public. Many companies are finding mock SEC examination for promoting better risk management and compliance. To perform SEC mock exam for an organization in a reliable and effective way, it is very important to hire an external professional agency.
To learn more about the importance of mock SEC exam continue reading this article.
Benefits of hiring an external firm to conduct Mock SEC examination
External firms provide expert and certified professionals, who have several years of experience to perform the program with great efficiency, precision and in conformance with established laws. When you have an independent SEC-registered firm to evaluate risk management operations for a company, then it is in a good position to identify potential issues prior to getting them disclosed in real time by the SEC.
www.focus1associates.com is the best SEC compliance services provider that specializes in providing the most experienced registered investment advisers, hedge funds and private funds with their compliance requirement under Rule 206(4)-7 of the IAA (Investment Advisers Act) of 1940.
Steps performed in Mock SEC Exam
- As the first step of Mock Exam, an initial analysis is performed on the basis of information given by the company. Information is received on the basis of samples, interviews, This preparation helps them to review company’s books and records and on request also provides a written report. This review focuses on all those areas that have been identified by the SEC in the statement to Rule 206(4)-7. These areas are:
- Portfolio management
- Trading related practices
- Information disclosed to investors, regulators and clients
- Generation and maintenance of records and protect them from unauthorized modification, use and damage
- Marketing advisory service
- Processes that do valuation of client holdings and on that basis assesses fees
- Safeguarding client records and information
- In the next step, all the resources and event-driven notifications are evaluated. Based on the study, webinar presentations on a quarterly basis and newsletter are formed that covers RIA compliance regulations, rules and best practices. It also provides compliance program tips and a summary of notable events.
Tips to prepare using Mock SEC Exam
- Hire a Securities and Exchange Commission (SEC) Registered Investment Advisers with an experience of at least three years.
- If you have an existing compliance program, then test the efficiency of the compliance program by performing a Mock SEC Examination.
- Get your mock examination done in different stages such as off-site and on-site mock SEC exam to perform accurate assessment of tasks.
SEC mock exam helps in identifying lack or gaps in the compliance program of the company. This enhances the effectiveness of the program and provides essential resources to improve the risk prevention controls of the company.