SEC Issues Report on Examinations of Investment Companies and Investment Advisers
By Investment Management Practice Group
On March 10, 2004, the Securities and Exchange Commission’s Office of Compliance Inspections and Examinations issued a report to Chairman William H. Donaldson regarding changes underway with respect to SEC examinations of investment advisers and investment companies. The Report was prepared in response to a request by Senator Richard C. Shelby, Chairman of the U.S. Senate Banking Committee in hearings conducted on the mutual fund industry last November. The Report summarized the examination process to facilitate the detection of market timing and late trading activity. These changes could have important consequences for the compliance programs of investment companies and their advisers.