SEC sets out examination process in new registrant handbook
The guide replaces and expands on the SEC’s previous brochure, covering examinations from risk assessment to the disposition letter.
The US Securities and Exchange Commission’s Division of Examinations has published a handbook setting out the stages of its examination process for registrants. The guide, titled “The SEC Exam Handbook: A Practical Guide on Process and Engagement”, replaces and expands on the division’s previous examination brochure.
The handbook covers the process from risk assessment through to the disposition letter. It also includes preparation resources and avenues for registrants to ask questions or provide feedback.
The SEC says the guide is intended to give regulated entities more insight into what to expect and establish clearer expectations. The division says it aims to make examinations more consistent and predictable, while offering a more accessible and collaborative process.
SEC Chairman Paul S. Atkins said the handbook’s transparency would make examinations more effective. Division Director Keith Cassidy said the guide responds to registrants’ calls for greater clarity.
The SEC says examinations are designed to monitor risk, improve compliance and industry practices, and help prevent fraud. The handbook’s detailed guidance was not included in the material accompanying the announcement.
