Practical Guide for Private Fund Managers Navigating SEC Exams in the Biden/Gensler Era (Part One of Two)

Changes are on the horizon for private fund managers with the Biden administration in place and Gary Gensler installed as SEC Chair. During the prior administration, examinations of private fund managers tended to see issues resolved within the SEC’s Division of Examinations as opposed to through referrals to the Division of Enforcement. Gensler has started to build out his staff – including with personnel previously on record as critical of the private funds industry. In a two-part guest series, Simpson Thacher partners Meaghan A. Kelly and Michael J. Osnato, Jr., along with senior counsel Allison S. Bernbach, provide a practical guide to help private fund managers navigate SEC exams in this new environment. This first article explores general expectations as to exams and furnishes practical tips to ensure managers are ready for exams. The second article will provide additional guidance for the periods following notification of an exam, during the exam and after the exam, including responding to any deficiencies. See “Anticipating SEC and CFTC Enforcement Priorities Under the Biden Administration” (Mar. 18, 2021).

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