Mock SEC Examinations

Practice makes prepared. Coast to Coast Compliance gives your firm and staff the confidence and preparedness to succeed in an actual regulatory examination.

Why firms run a mock exam

Regulatory examinations are on the rise, and it is important to be prepared for when, not if, your firm is examined by the SEC or another regulatory authority. SEC and state-registered investment advisers commonly conduct a mock examination within the first few years of registration, since a firm can be examined at any time once registered, and then every few years thereafter.

What the mock examination includes

• Requesting and reviewing key compliance and business documents
• Interviewing various firm personnel
• A final exam interview, or a written report if requested, covering the scope of the mock examination, relevant findings, and any resulting recommendations

How it differs from the annual review

The annual compliance program review is a required assessment of whether your policies and procedures are adequate and effectively implemented. A mock examination is an optional readiness test that mirrors how the SEC would actually inspect you, including document production and staff interviews. Many firms run them together so one engagement satisfies the rule and pressure-tests the program.

Other advisers and financial firms

For other types of investment advisers or financial services firms, a similar project may become relevant in preparation for registration with a particular regulatory authority, or through due diligence on behalf of a service provider or at an investor's request. If you are already under examination, see regulatory exam assistance, or contact us.