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Paulita Pike Shares Insight Into 2023 SEC Exam Priorities

Practices: Asset Management, Securities & Futures Enforcement

The Securities and Exchange Commission (SEC) earlier this month announced its 2023 examination priorities, some of which place mutual fund boards squarely in the crosshairs of regulatory scrutiny. The extra attention is unlikely to change boards' behavior, but rather serves as a reminder for diligence.

Asset management partner Paulita Pike told Fund Board Views that while she wasn't surprised by the SEC's ongoing attention to boards and their processes, she thinks it sends an important message to boards and their counsel. "It feels different. This confirms the feeling that boards are in the crosshairs a little more than usual, [but] it doesn't change anything that boards are doing."

"Boards continue to be on [the SEC's] radar, and it's clear that the exam priorities are going to focus on the board's meeting records and the board's diligence," Paulita underscored, noting that boards should work together with counsel to ensure records are being appropriately maintained and procedures are being followed. "It is not a change in how boards provide oversight, but it's good to know to set expectations if there is an exam."

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