A review conducted by the SEC's Division of Examinations to assess an adviser's compliance with securities laws. Examinations typically involve document requests, on-site or remote reviews, and staff interviews.
Common focus areas include fee calculations, valuation practices, conflicts of interest, custody compliance, and marketing materials. Exams may result in no findings, a deficiency letter, or a referral for enforcement action. Both RIAs and ERAs can be examined.
This article is for informational purposes only and does not constitute legal advice. Consult qualified professionals for guidance specific to your situation.