Interacting with SEC examiners can be a nerve-racking experience for even the most seasoned chief compliance officer (CCO). Serving as the key point persons during examinations, CCOs must think quickly on their feet to respond accurately to questions from examiners, while ensuring that they present themselves and their employers in the best light possible. This two-part series explores the initial interactions during examinations between examiners from the SEC’s Office of Compliance Inspections and Examinations (OCIE) and an adviser’s CCO, including a detailed discussion about OCIE’s fairly new practice of requesting the CCO to participate in a call to discuss the adviser’s business and compliance program (Interim Call) prior to coming onsite to the adviser’s office. This second article in the series examines how the SEC is using Interim Calls to meet multiple objectives; outlines the topics that are generally discussed during these calls; and provides guidance for how CCOs can prepare for them, including what documents and information they should review in advance and what materials should be on hand during these calls. The first article
discussed the ways in which the SEC initiates the examination process and provided insight into the form and substance of initial calls between the examiners and the CCO, including analysis of who participates in them on behalf of each of the SEC and the adviser. See “How Studying SEC Enforcement Trends Can Help Hedge Fund Managers Prepare for SEC Examinations and Investigations
” (Sep. 8, 2016); and “ALM General Counsel Summit Reveals How Hedge Fund Managers Can Prepare for SEC Examinations
” (Nov. 19, 2015).