SEC Division of Examinations publishes exam handbook

The SEC's Division of Examinations published a handbook that walks registrants through the examination process, replacing the brochure the division previously used for that purpose.

The guide, “The SEC Exam Handbook: A Practical Guide on Process and Engagement,” covers each exam stage from risk assessment to the disposition letter. The division described it as an expanded version of the brochure, with more detail on what to expect during an exam. It also lists “several avenues to provide feedback or ask questions.”

The release announces no amendment to the rules that examinations test against; it presents the handbook as a more detailed walk through the exam process. Keith Cassidy, director of the Division of Examinations, said the division was “answering the call from registrants to provide more clarity to the exam process,” with the aim of making it “more consistent and predictable for everyone involved.”

For compliance staff at advisory firms and fund managers, the practical change is a reference document rather than a rule change. They can use it to prepare for exams and check that their procedures line up with the stages the division now describes in public. For allocators, the handbook gives a public reference for checking whether a manager's exam preparation follows those stages.