New tool facilitates mock audits and SEC exams

Fund managers will be able to take part in mock audits and Securities and Exchange Commission examination interview dry runs using new compliance software created by law firm Seward & Kissel.

During mock audits on the Regulatory Compliance platform, attorneys perform analysis of policies, procedures and practices and in-person interviews of key personnel to identify potential deficiencies.

The platform also offers compliance consultancy services and access to an online subscription service that gives investment advisors access to documents that can help fill out registration forms and other regulatory paperwork.

The tool is the latest in line intended to help private fund managers tackle increased regulatory demands. Last week, an artificial intelligence-powered product that automatically identifies European regulatory conflicts was launched by fintech firm Waymark, as reported by pfm.

Compliance experts have advised firms to maintain robust compliance policies, despite the anti-regulation rhetoric surrounding the Trump administration.

Speaking to pfm in May, BlackStone CCO John Finley said that while firms may get relief on the enforcement front, examinations are likely to remain at a sustained level. He also warned of topic-specific sweeps as exam staff become more knowledgeable about private equity.

“I don’t expect the exams are going to become easier,” he said.