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What will happen to OCIE inspections?

SEC puts out a helping hand. But what's the plan for OCIE examinations?; Eurazeo full year results show strong cash position.

What about exams?: Jay Clayton’s agency gave the industry a welcome, if perhaps largely unneeded, acknowledgement of the challenges the covid-19 pandemic is posing to private funds, when it announced last week that it was extending the deadlines to update Form ADVs, as well as Form PF filings, as sister title Regulatory Compliance Watch reported. The extension is for 45 days from the original deadline, as long as that deadline was on or after the March 14 announcement, but before April 30.

The Securities and Exchange Commission said in a statement that “the time period for any or all of the relief may, if necessary, be extended with any additional conditions that are deemed appropriate, and the Commission may issue other relief as necessary or appropriate.”

The SEC, which like many organizations is now having to deal with the impact of the coronavirus internally, also said it will “consider additional relief from other regulatory requirements” as it monitors and assesses impacts related to the spread of the pandemic.

The question this begs is, with many firms surely busy just trying to adapt to a rapidly evolving situation, and the SEC itself already impacted by the virus, will they roll back on Office of Compliance Inspections and Examinations? Craig Moreshead, managing director at regulatory and compliance services provider Foreside Financial, says he has clients that are currently under examination. “But at the time we’re in now, a lot of offices are closed, or staff are working remotely,” he said. “There may not be anyone in the office” to greet examiners. Moreshead says he would expect the SEC not to open new examinations under the circumstances, unless for cause – but the agency hasn’t signaled its thinking yet.

See a listing of our recent coverage (and RCW’s) at the bottom of the email.

European earnings: Today, Partners Group reports annual earnings. We’ll keep you up to date on any notable developments or announcements regarding its operations and finances, if any. Yesterday, Eurazeo noted in its full-year statement that it is relying on its “strong cash position in 2019” to help it ride out the current storm. Earlier this year, the firm penned a €1.5 billion credit line with banks, indexed against enivronmental, social and governance criteria, in what was the first “green” facility for a PE firm ever. It ended 2019 with €533 million in cash.

OCIE coverage:

OCIE is coming to get ya! (Here’s what they’re looking for)

Adherence to fiduciary duty among 2020 OCIE exam priorities

New OCIE report shares cyber best practices

Exam recap: What’s hot during OCIE exams

Email prepared by Graham Bippart