Compliance and Regulatory Alerts | 10-02-26

SEC Publishes New Exam Handbook: What Examiners Expect from Your Firm

On October 1, 2026, the SEC's Division of Examinations (EXAMS) published The SEC Exam Handbook: A Practical Guide on Process and Engagement. The handbook replaces the Division's previous examination brochure and walks registrants through each stage of an SEC exam, from candidate selection to the disposition letter. It is staff guidance and creates no new obligations, but it puts the Division's expectations in writing.

What Stands Out

Your filings shape the exam before it starts. Staff will likely review your filings and website during pre-exam planning, and accurate filings can reduce findings.

Records run on a short clock. The Commission expects that, in most circumstances, records should be available within 24 hours. In practice, Staff usually allow two weeks for the initial request and will grant reasonable extensions or rolling productions where appropriate.

Interviews are how Staff learn your business. Staff expect knowledgeable personnel. They do not consent to recording, transcription, or AI notetaking tools in exam meetings.

Staff will ask leadership to attend the exit conference. Staff typically ask senior management or board members to attend. It is also the firm’s opportunity to correct inaccuracies or provide additional information.

Deficiency letters are the norm. Most exams conclude with one. Staff issue a disposition letter within 180 days after on-site work ends and all records arrive. You typically have 30 days to respond. Prompt and appropriate corrective action may be a mitigating factor whether a finding is referred to Enforcement, though it is not dispositive.

For Broker-Dealers and Dually Registered Firms

The handbook covers SEC exams only, not FINRA's process. Dually registered firms should disclose other ongoing regulatory inquiries when an exam is announced. They should also assume the Division may share its exam information with other regulators.

Practical Steps to Consider

Compare Form ADV, Form CRS, your website, and marketing materials against actual practices.
Test whether you can produce core records within 24 hours.
Adopt a policy on AI notetaking tools in regulator meetings.
Build a remediation process that supports a complete 30-day response.

Bates Group's Perspective

The SEC’s new Exam Handbook describes a collaborative process that provides firms with greater transparency into what staff expects throughout the examination process. Firms can use that as a practical benchmark for assessing exam readiness. The question to ask now is: If the SEC examined your firm tomorrow, would your regulatory filings, records, personnel, controls, and in-person explanations tell the same story?

How Bates Group Helps

When an exam notice arrives, firms have little time to correct gaps. Bates Group helps broker-dealers, investment advisers, and dually registered firms prepare through mock regulatory exams, exam prep reviews, consistency reviews, and exam remediation support, so you identify issues before examiners do.