The successful settlement of SEC enforcement actions against registered investment advisers and other subjects of SEC actions, often entails an undertaking to engage an “Independent Compliance Consultant” who is “not unacceptable” to the Commission staff. The Consultant is often responsible for reviewing and assessing policies and procedures, firm disclosures regarding fees and expenses, and evaluating marketing materials or other aspects of the firm’s business that have prompted the SEC inquiry. (See, e.g., In re Equitas Capital Advisors, LLC, Securities Exchange Act of 1934 Release No. 70743 (October 23, 2013)). The Independent Consultant is frequently tasked with preparing a report, and proposing improvements to policies and procedures.
Performing the role of an Independent Compliance Consultant requires experience, judgement and the ability to work constructively with counsel and management. We have decades of experience in SEC enforcement matters, assessing policies and procedures, and working with management and counsel to reach solutions that both meet regulatory expectations and are tailored to the operations of each particular business model.