An initial interview with principals and managers will cover information regarding how you or your firm markets itself to new clients, the kinds of advisory services being provided, and the types and number of clients serviced by the adviser. A list of the office personnel and their duties will be requested along with information regarding the preparation, filing and retention of your books and records. Supervisory and internal control procedures will also be discussed during the initial interview. Thereafter, the examiner will review a random sample of your books and records, including but not limited to the records listed in the books and records section of the Code. The examiners may, at their own discretion, ask to review any other records which may have a bearing on the operations or relationships of your investment advisory business or any of your employees.
Most examinations take less than one day to complete.
At the conclusion of the on-site portion of the examination, the examiner may review the findings with a principal or manager. In some instances, the examiner may ask that additional information be sent to the examiner's office and any additional questions that arise will be addressed in the exam report letter. A written examination report will always be sent to the investment adviser, usually within two weeks of the on-site examination. The letter will note any deficiencies or concerns the staff had as a result of the examination. Deficiencies are possible violations or significant problems in procedures or record keeping which must be addressed.