SEC’s Division of Examinations Announces New Exam Handbook

The Securities and Exchange Commission (SEC) Division of Examinations has released its updated handbook, "The SEC Exam Handbook: A Practical Guide on Process and Engagement," replacing the previous examination brochure. This new handbook offers registrants a more in-depth understanding of what to anticipate during an examination, providing greater clarity and consistency across the country.

The handbook outlines the process used by division examiners, emphasizing the SEC's commitment to collaboration and accessibility. Division examinations serve multiple purposes, including improving industry practices, compliance, risk monitoring, and fraud prevention. According to SEC Chairman Paul S. Atkins, "The Division of Examinations is a crucial part of how the SEC provides market oversight and protects investors.

The Division’s new handbook clarifies the examination process, offering regulated entities greater insight into what to expect during an exam and establishing clear expectations."

Keith Cassidy, Director of the SEC’s Division of Examinations, stated, "The division’s goal to be more accessible provides registrants and the Commission with a more efficient and effective examination program." By addressing feedback from registrants to provide more transparency, the handbook aims to make the examination process more consistent and predictable for all involved.

The Examination Process Handbook details each stage of an exam, from risk assessment to the final disposition letter, alongside opportunities for feedback and question-asking. Additionally, it offers practical tips and resources to help registrants prepare for an exam and stay informed about compliance obligations.