[24143]
February 22, 2010
TO: COMPLIANCE MEMBERS No. 6-10INVESTMENT ADVISER MEMBERS No. 2-10
OPERATIONS MEMBERS No. 2-10
SEC RULES MEMBERS No. 18-10
SMALL FUNDS MEMBERS No. 12-10
TRANSFER AGENT ADVISORY COMMITTEE No. 11-10 RE: SEC THIRD-PARTY VERIFICATION DOCUMENT REQUEST LETTER
As you may know, in connection with conducting inspections of SEC registrants, the SEC’s examiners have begun routinely contacting the registrant’s customers, service providers, or counterparties to verify information contained in the registrant’s records. [1] With respect to service providers and counterparties, the verification process involves sending a written request that asks the recipient to produce specified records relating to the registrant [2] and includes four pages of “Supplemental Information for Registered Entities Directed to Supply Information Other Than Pursuant to a Commission Subpoena.” This material discusses, among other things, the effect of not supplying information, the consequence of providing false information, how the information provided may be used, and the treatment of the information provided to the Commission under the Freedom of Information Act (FOIA).
It is likely that ICI members will be either the subjects or recipients of these verification requests, or both. Accordingly, to familiarize members with the request letter and enable members to consider the issues discussed in the Supplemental Information portion of the letter in advance of receiving it, attached is a copy of a verification request letter used by the SEC staff.
If you have questions regarding the form of the Commission’s request that you would like us to discuss with the Commission’s staff, or suggestions for improving the Commission’s verification process, please let me know. I can be reached by phone (202-326-5825) or email (tamara@ici.org).
Tamara K. Salmon
Senior Associate Counsel
endnotes
[1] A copy of the request sent to customers is available on the SEC’s website at: http://www.sec.gov/about/offices/ocie/routine_account_information_confirmation.pdf.
[2] The phrasing of the letter may vary slightly depending upon whether the recipient is registered with the SEC and subject to the SEC’s inspection authority.