A letter from the SEC following an examination that identifies specific areas where your practices do not meet regulatory requirements. It is not an enforcement action, and it is not public.
You are expected to respond in writing, describing the corrective actions you have taken or plan to take. Deficiency letters are an opportunity to fix problems before they escalate. Take them seriously, respond promptly, and implement the corrective measures. If the SEC follows up and finds the same issues unaddressed, the consequences are more severe.
This article is for informational purposes only and does not constitute legal advice. Consult qualified professionals for guidance specific to your situation.