S4:E1 | Recent Trends in SEC Examinations - Lessons From The Front Lines | Compliance In Context|

Written By Katie Sizemore
 

Welcome back to the Compliance in Context Podcast! Today’s show is a historic one as we officially launch Season 4!!  To help us celebrate such a momentous occasion, we welcome in Ranah Esmaili to do a deep dive on recent trends in the SEC examination space and kickoff the next iteration of our Lessons From The Front Lines series.  An SEC alum herself, Ranah shares some invaluable insights in many critical areas affecting a firm’s compliance program including disclosures, cybersecurity and information security, off-channel business communications, private funds, mutual funds, the new Marketing Rule, and much more. 

Show

Interview with Ranah Esmaili

  • What are some of the general examination practices you’re seeing right now?

  • What are some of the key areas where you’re seeing this play out in examinations today? 

  • In the areas of cyber and information security, where do you see exam teams focusing their efforts?

  • Is the SEC focusing on the issue of off channel communications during examinations and what are they looking at?

  • How can firms enhance their electronic communications policies, procedures and practices in anticipation for an exam?

  • What is the focus in examinations in the private fund space?

  • What is the focus in examinations in the mutual fund space?

  • Now that the compliance date for the new Marketing Rule has passed, what’s the SEC doing on the exam front?

  • What are some things firms can be doing post-Compliance date to ensure good marketing rule hygiene?

  • Tips for firms that looking to prepare for exams

 

Quotes

10:07 - “We’re talking about environmental, social and government investing, so ESG. The SEC has been scrutinizing ESG investing out of a concern for green washing. And that term ‘green washing’ is basically the practice of making investments look more E, S, and G friendly than they really might be.”- Ranah Esmaili 

13:00 - “Compliance failures alone can really carry serious consequences. So when the SEC is focused on ESG compliance, policies, and procedures, that’s really not just an academic exercise. It can carry really serious consequences.”- Ranah Esmaili 

24:04 - “Firms can send out periodic compliance reminders, just so that the issue is always at the top of employees’ minds. They can conduct training. They can require employees to certify compliance with the firm’s policies and procedures. And they can conduct electronic surveillance, looking for indicators of unauthorized communications. To the extent that the firms are identifying employee violations of their [recordkeeping] policies, they should have a thoughtful approach for dealing with those violations, particularly where they find employees that have repeat violations.” - Ranah Esmaili 

Katie Sizemore
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S4:E2 | Keeping Up With ESG | Compliance In Context
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S3:E14 | The State of the Investment Adviser Industry | Compliance In Context