• Is This an Inspection or an Investigation? The Blurring Line Between OCIE and Enforcement
  • March 12, 2012 | Author: Mark K. Schonfeld
  • Law Firm: Gibson, Dunn & Crutcher LLP - New York Office
  • The most significant impact of SEC registration on private fund advisers is that the adviser becomes subject to inspection by the SEC's Office of Compliance Inspections and Examinations (OCIE). The greatest risk arising from an examination is that the inspection staff decides to refer finding from an inspection to the Division of Enforcement for an investigation. This article discusses the risks of an examination becoming an investigation and strategies for anticipating and mitigating those risks.