Best Practices for Hedge Fund Managers Preparing for an SEC Examination

Examination by the Securities and Exchange Commission is a fact of life for registered investment advisers, including hedge funds, but in recent years, the SEC’s Office of Compliance Inspections and Examinations has ramped up its examination efforts, in quantity and scope, so managers today must be as prepared as possible, and at all times, for the inevitable inspection. This two-part series explains the types of examinations the SEC conducts on hedge fund managers, events that trigger exams and pre-exam preparations firms should undertake. The series also covers pre-exam preparations and details best practices for getting through the actual on-site visit. Partner Marc Elovitz and former Schulte lawyer Brian Daly discuss the importance of understanding the SEC’s exam priorities, preparing staff and developing introductory presentations.