Breaking Down The SEC Examinations Process: Key Considerations For Registrants, Part 1

In a two-part legal update, we will discuss key information SEC registrants should know going into the upcoming review cycle conducted by the Division of Examinations (the Division). This first update attempts to demystify the SEC examination process and addresses the common questions and concerns that arise during such a review. The next update, which is forthcoming, discusses the Division's 2025 examination priorities report published in October 2024, particularly what risk areas SEC registrants can expect the staff to focus on over the next fiscal year. We hope this series will better prepare firms for an SEC examination and, in that same vein, inspire a proactive approach toward securities compliance.