Advisers should be prepared for the SEC's office of compliance inspections and examinations to shift its examination priorities and procedures to address risks to investors that have recently arisen in the current climate. Although the SEC reports that OCIE and the division of enforcement "remain fully operational," the agency also announced that it has "transitioned to a full telework posture with limited exceptions." Thus, advisers should expect that OCIE will continue to conduct examinations of investment advisers but will likely do so remotely. Areas of examination focus may include business continuity plans; disclosures, procedures, practices, and undisclosed conflicts relating to liquidity, redemptions, and valuation; and cybersecurity.
Matthew Rossi, Stephanie M. Monaco and Tram N. Nguyen are partners at Mayer Brown LLP and Leslie S. Cruz is counsel. Mayer Brown partners John W. Noell, Adam D. Kanter and Wendy Dodson Gallegos, and counsel Peter M. McCamman also contributed. This content represents the views of the authors. It was submitted and edited under Pensions & Investments guidelines, but is not a product of P&I's editorial team.