Financial Advisors Want to Know Podcast: How to Prepare for an SEC Exam | Ep. 99 Chris Stanley
Welcome to the Financial Advisors Want to Know Podcast, I’m Catherine Tindall a CPA with Dominion where our focus is helping financial advisors navigate income tax planning and compliance for their firms.
On this episode, I sat down with Chris Stanley of Beach Street Legal to talk about how advisory firms can get their compliance systems in order for the year ahead. We discussed preparing for SEC exams, building processes that scale as firms grow, and the compliance habits that can prevent problems down the road.
Key Insights:
SEC Exams Are Ultimately “Books and Records” Exams
Most SEC examinations come down to documentation. If policies, procedures, and compliance tasks aren’t documented, regulators will treat them as if they never happened.
Compliance Should Be a System, Not a Fire Drill
Firms should build recurring compliance processes—like a compliance calendar or checklist—so tasks become routine rather than rushed reactions when regulators ask for documents.
Delegation and Technology Reduce Compliance Burden
Chief Compliance Officers don’t need to personally execute every compliance task. Firms can use workflow tools, compliance software, and team delegation to manage responsibilities efficiently.
Referral Compensation Comes with Regulatory Requirements
Advisors can compensate CPAs and other professionals for referrals, but they must follow SEC marketing rule requirements, including written agreements, disclosures to clients, and regulatory checks on referral partners.
Data Security and Incident Response Are Now Major Compliance Priorities
Recent updates to Regulation S-P require firms to implement incident response programs, notify clients of breaches within specific timelines, and ensure vendors notify advisors within 72 hours if client data is compromised.
Connect with Chris:
https://www.linkedin.com/in/cdstanley/
Check out Chris's website:
https://beachstreetlegal.com/
Connect with Catherine:
https://www.linkedin.com/in/ctindallcpa/
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Contact Catherine's Team:
admin@dominiones.com
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