Key takeaways

• The recently published 2016 examination priorities of the SEC’s Office of Compliance Inspections and Examinations generally focus on the same themes as the 2015 priorities: (i) protecting retail investors, (ii) assessing market-wide risks and (iii) using data analytics to identify signals of potential illegal activity.
• Of particular interest to private equity fund sponsors, the 2016 priorities include: (i) a continued focus on fees and expenses; (ii) controls and disclosures associated with side-by-side management of clients with different fee structures; (iii) cybersecurity; (iv) private placements relying on Regulation D under the Securities Act of 1933; and (v) investment advisers who have not yet been examined.