The news
The Securities and Exchange Commission's Division of Examinations published a new SEC exam handbook on October 1, 2026, a guide to how it examines registered firms such as investment advisers and broker-dealers. Titled The SEC Exam Handbook: A Practical Guide on Process and Engagement, it replaces the division's previous examination brochure, the agency said.
The handbook walks through an exam from start to finish: how firms are selected, how exams are announced, information requests, interviews and on-site visits, the exit conference and the final letter. The SEC said the aim is a more consistent, accessible and collaborative process.
SEC Chairman Paul S. Atkins said the transparency the handbook provides will make examinations more effective. Keith Cassidy, director of the Division of Examinations, said the division was answering registrants' calls for more clarity.
The document sets out key deadlines. Citing federal law, it says firms will receive a disposition letter within 180 days of the later of the end of any on-site work or receipt of all requested records, with a possible extra 180 days for certain complex exams. Staff will typically ask firms to respond to a deficiency letter within 30 days, and staff aim to send any further comments within 60 days of that response.
The handbook also states that most examinations end with a deficiency letter, and that being chosen for an exam is not in itself a sign that something is wrong. It says staff do not record or transcribe meetings and do not consent to recording, transcription or artificial intelligence notetaking tools.
Selection factors listed include prior exam history, tips and complaints, time since the last exam, changes in leadership, media reports and whether a firm holds or has access to client assets. Feedback and unresolved concerns can go to the Examination Hotline, which also offers a route to the SEC's Office of Inspector General.
The numbers
- Deadline for disposition letter
- 180 days (extendable 180 days for some complex exams)
- Typical deadline to answer a deficiency letter
- 30 days
- Staff target for follow-up comments
- 60 days after firm response
- Specialized exam programs
- 5
Why CEOs should care
For chief compliance officers, the handbook is now the clearest statement of what examiners expect. Map its stages against your own exam-response playbook: who takes the announcement call, how fast records can be produced, and who attends the exit conference. The handbook says staff typically ask for senior management or board members to attend the exit conference, so directors should be ready to show up.
The 30-day response window is tight for firms with complex findings. General counsels should line up remediation owners in advance and request extensions early if needed, as the handbook advises. The document also notes that prompt corrective action may count as a mitigating factor when staff weigh referrals to the Division of Enforcement.
Technology leaders should note the line on AI notetakers. Many firms run meeting assistants by default on video calls; those tools should be switched off for exam interviews. CISOs should also check that systems used to share records with examiners meet the handbook's data submission and confidentiality expectations.
The bigger picture
Under Chairman Atkins, the SEC has emphasized clearer guidance for regulated firms. The handbook fits that approach by putting the exam process in writing, while keeping the agency's power to refer issues to enforcement. It states that none of the possible exam outcomes prevents the Commission from taking action, so clearer process does not mean lighter oversight.
What’s next
Compliance teams should read the full handbook, update internal exam procedures and train staff who handle examiner requests. Watch for the division's annual examination priorities, which the handbook says guide which topics and firms draw attention.
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