Simulated SEC Exams Find Gaps

Posted on August 21st, 2015 at 4:12 PM
Simulated SEC Exams Find Gaps

From the Desk of Jim Eccleston at Eccleston Law LLC: 

Due to increased regulatory scrutiny, advisory firms now are conducting more mock exams to find compliance problems before the real test is done by the SEC. 

As the number of new regulations increases, so does the number of firms performing simulation exams. In just two years, the number of firms performing those exams jumped from41% to 52%.

In total, the exam and a detailed report of the findings cost $5,000 and up. Mock exams are useful for firms to be certain policies and procedures are working as intended, especially in the areas SEC specifically will target. This year the focus is on retirement-planning guidance as well as cybersecurity preparedness.

Some firms pick high-risk areas to focus on and solely do mock exams on those specific areas. Such areas include: cybersecurity, personal trading, disaster-recovery planning, and advertising.

The attorneys of Eccleston Law LLC represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services.

Related Attorneys: James J. Eccleston

Tags: Eccleston Law LLC, James Eccleston, eccleston, Eccleston Law,

Return to Archive



We just wanted to say thanks for your work in helping us get back some of the money we lost. We are not by any means rich, but we have saved some money and we have done so through a tight-fisted approach to most everything we do. So losing a significant chunk of money hurt…especially at a time when everyone else was growing their accounts. We really appreciate the work you did.

Allan and Adele


October 27, 2021
Former LPL Advisor Suspended For Completing 22 Trades Absent Client Consent

The Financial Industry Regulatory Authority (FINRA) has suspended and fined a former LPL advisor who allegedly completed 22 trades on behalf of a client without obtaining written consent. FINRA has issued a $5,000 fine and has suspended Michael Hartlett for 10 days.

October 26, 2021
Former Advisor Fails To Reverse Bar After Alleged $1 Million Theft From RBC

A former RBC Wealth Management advisor lost his bid to reverse an industry bar, according to an appellate decision issued by the Financial Industry Regulatory Authority (FINRA).

October 25, 2021
Firms Walk Thin Regulatory Line In Referring Self-Directed Clients To Advisors

While online trading platforms have surged in popularity during the pandemic, brokerage firms view self-directed investors as a source of new clients.