Aaron Schlaphoff Discusses Private Fund Manager Response to SEC Examinations With Private Equity Law Report

Corporate partner Aaron Schlaphoff was quoted extensively in a two-part Private Equity Law Report about how private fund managers can prepare for and handle examinations launched by the U.S. Securities and Exchange Commission.

In “Dealing With Deficiencies: How to Ensure Smooth SEC Examinations and Prepare to Respond to Inevitable Deficiency Letters,” published on January 27, Aaron stressed the importance of preparing for the most likely outcome of an SEC exam: a deficiency letter. “If the staff finds something during the course of the exam that we know is going to need to be remediated, sometimes we’ll do it during the exam. At least, we’ll start the process of evaluating different options,” Aaron said.

In “Dealing With Deficiencies: Strategies for Responding to the SEC and Drafting Deficiency Response Letters,” published on February 6, Aaron emphasized respect in all communications with the agency, whether a fund manager plans to object or remediate. “We recommend adopting a respectful tone in the deficiency response letter,” he said. “You want to show good faith and respect for the staff’s views, but that does not necessarily mean accepting every finding without rebuttal.”

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