The SEC’s Division of Examinations (Division) recently sought to elevate CCOs’ practices by issuing a risk alert on notable compliance issues identified by staff members during examinations of private fund managers (Risk Alert). At first glance, many practitioners considered the examiners’ observations to be rather routine or fundamental. That perception should only serve to bolster the importance of the Risk Alert, however, as it emphasizes that many firms are failing at many of the most basic compliance tasks they may be taking for granted. To evaluate important details and key takeaways from the Risk Alert, the Hedge Fund Law Report interviewed several practitioners for their insights on the items addressed in the Risk Alert. This second article in a two-part series highlights concerns in the Risk Alert about inadequate annual compliance reviews and ill-tailored policies and procedures, along with high-level takeaways to consider. The first article summarized the Division staff’s observations about fund managers’ limited compliance resources, primitive technology and poor empowerment of CCOs. See our coverage of Division risk alerts on the coronavirus pandemic; private fund managers; the transition from LIBOR; Regulation Best Interest and Form CRS; electronic messaging; the cash solicitation rule; best execution; fees and expenses; the advertising rule; compliance topics; custody; cybersecurity; business continuity and disaster recovery plans; and social media.