Marc Wyatt, Acting Director of the Securities and Exchange
Commission's ("SEC") Office of Compliance Inspections
and Examinations ("OCIE"), recently took part in a
meeting of the ABA Hedge Fund Sub-Committee on November 20, 2015,
during which it is reported that Director Wyatt remarked that his
office is or will be routinely examining exempt reporting advisers
("ERAs"). This may mark a significant shift in OCIE
practices from that detailed in prior statements by SEC officials,
which noted that, although the law permits the SEC to examine ERAs,
the SEC did not intend to routinely examine them, instead focused
its efforts in this area on registered investment advisers.
It should be noted that Mr. Wyatt's remarks have not been
made publicly available by the SEC, nor has the Commission
confirmed or denied whether these statements do indeed reflect a
change in policy. However, ERAs should be aware that they may now
be included in the pool of advisers that OCIE will
