Increasingly, the US investment management industry is embracing and focusing on forensic testing, in large part in response to compliance program rules adopted by the US Securities and Exchange Commission (SEC) in 2003. As a result of these rules, registered investment companies and investment advisers can expect the SEC, during its inspections and examination, to inquire about whether they have incorporated forensic testing into their annual compliance review processes.
This publication addresses questions such as:
- How did this focus on forensic testing emerge?
- What are the SEC's expectations of RICs and investment advisers regarding forensic testing?
- How can funds, investment advisers and their service providers strengthen internal control by incorporating forensic testing into their compliance programs?
This document is intended primarily for use by chief compliance officers of registered investment companies and investment advisers, as well as other compliance professions, risk managers, internal auditors and supervisors of these personnel.
