Practice question, Books and records
Show where the records on a typical initial request are kept, who can produce each one, and how long it takes to produce them in the format the request asks for.
Taft practice question: not an official regulator question. SEC Division of Examinations, United States (federal). For SEC-registered investment advisers. Evidence category: Records and systems.
Not legal advice. A practice prompt for rehearsing how your team explains its controls and evidence. No scoring, no model answer, no implication that a regulator will ask these words.
Authored by Taft. Last checked 2026-11-09. All questions.
Why it is relevant
The exam handbook says the staff sends a letter formally notifying the firm of the examination with an initial request for information, and that the request explains how to format and transmit the information.
Sources: [1] Information Requests
Evidence to locate
Suggested, not mandatory. A regulator's actual request list governs.
The list of typical initial information requested of advisers, used as a dry-run index.
Sources: [2] Attachment
Follow-up prompts
Which record took longest to produce in your last dry run?
Applicability
- Applies to
- Advisers registered or required to be registered with the SEC. Retention periods are quoted in the deadline references.
- Does not apply to
- Not stated.
Cite
Cite the official source first. Then: Taft Compliance Group, Exam-prep toolkit (draft), question q-records-production, https://taftcompliance.com/resources/exam-prep-toolkit/questions/q-records-production, last checked 2026-11-09.
Sources
U.S. Securities and Exchange Commission, Division of Examinations, The SEC Exam Handbook: A Practical Guide on Process and Engagement (staff statement). regulator guidance. Information Requests, page 4.
https://www.sec.gov/files/exam-handbook.pdf
Checked 2026-11-09.
Supporting passage
After the exam is announced, the staff will send a letter formally notifying you of the examination and providing an initial request for information. The request will be made pursuant to the examination authority applicable to your firm, for example, section 204(a) of the Investment Advisers Act of 1940 for registered investment advisers. The information request will provide details about how to format and transmit the requested information.
U.S. Securities and Exchange Commission, Division of Examinations, Risk Alert: Investment Advisers: Assessing Risks, Scoping Examinations, and Requesting Documents (staff statement). regulator guidance. Attachment, Typical Initial Information Examiners Request of Investment Advisers: Compliance Program and Oversight Process; Valuation; Information Processing, Reporting, and Protection.
https://www.sec.gov/files/risk-alert-ia-risk-and-requesting-documents-090623.pdf
Checked 2026-11-09; published 2023-09-06.
Supporting passage
Compliance policies and procedures in effect during the examination period. Tests performed (i.e., compliance reviews, quality control analyses, surveillance, and/or forensic or transactional tests performed by the firm). Annual and/or interim reviews of policies and procedures, including any reports prepared. Record of compliance exceptions. Inventory of compliance risks and conflicts of interest that forms the basis for policies and procedures and notations regarding changes made to the inventory. Valuation process. Fair-valued and illiquid securities held by clients. Advisory fee calculations. Pricing overrides. Safeguards for the protection of customer records and information. Business continuity plan. Cybersecurity incidents or breaches (e.g., incident description, impact, and remediation).
Changes to this question
No released changes.