On October 21, 2024, the SEC Department of Examinations (“DOE”) released its 2025 Examination Priorities (“Exam Priorities”). By now multiple law firms, consultants and press outlets have written about what the SEC’s exam priorities are for 2025. I don’t intend to regurgitate what the SEC or others have already published.
As they relate to private equity fund managers, the SEC’s Exam Priorities can be divided into four categories – Core Areas of Compliance Programs, Compliance Policies and Procedures, Private Fund Advisers and Other.
This article is designed to translate the SEC’s broad brush strokes into the specific by linking the SEC’s exam priorities to specific DOE exam requests from actual examinations of private equity funds.
The Exam Priorities highlight specific areas of focus for DOE’s assessment of the effectiveness of advisers’ compliance programs. Click on each topic below to see specific examples of DOE exam requests for each area.
I. Core Areas of Compliance Programs
A. Marketing
B. Valuation
C. Trading
E. Disclosure and Filings
II. Compliance Policies and Procedures
A. Fiduciary Obligations
B. Alternative Sources of Revenue or Benefits
C. Appropriateness and Accuracy of Fee Calculations
III. Private Fund Advisers
A. Consistency of Disclosures and Practices
B. Accuracy of Calculations and Allocations of Fees and Expenses
C. Disclosure of Conflicts of Interest
IV. Other
B. Anti-Money Laundering
How Trillium Can Help
Interested in seeing more private equity specific examination requests? Trillium maintains a library of examination requests from clients and contacts to remain current on the SEC Staff’s requests. Trillium’s collaborative Compliance “Health Check” service is designed to simulate the examination process rigor using actual examination requests and techniques while also providing advice and resources for improvement where needed.
Trillium’s ongoing compliance support is designed to ensure clients are prepared when the SEC comes knocking. SEC examination support is included as part of the ongoing compliance support Trillium provides to clients. Trillium guides clients through the examination process by advising on process and document production, reviewing documents before production and providing documentation as needed from technology systems.