The U.S. Securities and Exchange Commission (SEC) has published a new examination handbook providing regulated entities with detailed guidance on the conduct of regulatory examinations. Released on 1 October 2026, the new handbook replaces and expands the SEC’s previous examination brochure. The publication aims to increase transparency regarding examination procedures and clarify the respective expectations of SEC examination staff and regulated entities.

The handbook, issued by the SEC’s Division of Examinations, provides a comprehensive overview of the examination process, from the selection of entities for examination to the communication of findings and the conclusion of supervisory reviews. It explains that examinations follow a risk-based approach, considering factors such as previous examination findings, supervisory concerns, complaints, business activities, potential conflicts of interest and changes in an entity’s risk profile. The SEC emphasised that selection for examination does not indicate suspected misconduct.

A central aspect of the handbook concerns information requests and cooperation during examinations. The SEC explains that examinations generally begin with an announcement to the entity’s chief compliance officer or another regulatory contract, followed by a formal request for information. While the SEC expects records to be available within 24 hours in most circumstances, examination staff generally allow approximately two weeks to respond to initial document requests. The handbook also addresses supplemental requests, interviews, on-site visits and the treatment of information withheld on grounds of legal privilege.

The handbook also clarifies the possible outcomes of an examination. Following an exit conference, the SEC may issue a disposition letter confirming that the examination has concluded, that it has concluded without findings, or that corrective action is requested. Where deficiencies are identified, the SEC generally expects a written response within 30 days, describing measures taken or planned to address the findings. The handbook further explains that examination findings may be referred to the SEC’s Division of Enforcement or other competent authorities. Importantly, the conclusion of an examination does not preclude subsequent enforcement action.

The handbook does not introduce new substantive compliance obligations. Rather, it consolidates and explains existing examination procedures and supervisory practices, providing regulated entities with a practical reference for preparing for and responding to SEC examinations.