SEC’s OCIE Publishes Risk Alert Providing Its Observations of Investment Adviser Compliance Programs

On November 19, 2020, the Office of Compliance Inspections and Examinations (“OCIE”) of the US Securities and Exchange Commission (“SEC”) published a risk alert discussing its observations from a series of examinations that focused on SEC-registered investment advisers related to the compliance rule (Rule 206(4)-7 under the Investment Advisers Act of 1940, as amended). The risk alert covers a fairly comprehensive set of compliance program deficiencies the OCIE staff has identified in a sample of deficiency letters from recent adviser examinations. On the same day, at OCIE’s National Investment Adviser/Investment Company Compliance Outreach 2020 seminar, OCIE Director Peter Driscoll made opening remarks that focused on the role of an adviser’s Chief Compliance Officer. Because the risk alert and the director’s speech focus on similar issues, this Legal Update summarizes both.