Products & Practices: Preparing for an Investment Adviser Exam in 2025

This course is designed to equip investment adviser representatives with the knowledge required to understand and prepare for the examination requirements of their firm. Emphasis is placed on the regulatory expectations that investment adviser firms must meet during examinations conducted by the SEC and state securities regulators.

Participants will review the SEC’s current exam priorities—which include cybersecurity, supervisory oversight, and robust documentation practices—as well as state-specific findings from state securities regulators. The course covers key areas such as internal controls, compliance policies and procedures, recordkeeping, conflict-of-interest management, and the role of supervisory review. The objective is to help representatives identify gaps in their firm’s current practices, implement best practices for exam readiness, and ultimately reduce the risk of noncompliance.

Course Objectives

1. Understanding of the Investment Adviser Examination Process: Understand the typical process for an investment adviser examination and certain best practices.
2. Identify Key Focus Areas: Describe the SEC’s exam priorities—such as cybersecurity, supervisory procedures, and documentation—and the main areas of concern highlighted in NASAA’s exam findings.
3. Evaluate Internal Controls: Assess the importance of strong internal controls, effective compliance policies, and comprehensive recordkeeping practices in meeting regulatory requirements.
4. Implement Best Practices: Develop strategies and remediation plans to address potential weaknesses in a firm’s examination readiness program.
5. Enhance Supervisory Oversight: Understand the critical role of supervisory review in maintaining a robust compliance framework and mitigating regulatory risks.
6. Prepare Effective Documentation: Recognize the need for clear, detailed, and current documentation that supports compliance with both SEC and state regulatory standards.