The Securities and Exchange Commission (SEC) Division of Examinations has issued a Risk Alert providing guidance to municipal advisors regarding the examination process. This alert outlines the criteria the Division may use to select firms for examination, the key areas of focus during these examinations, and a sample list of initial documents and information that may be requested.

This guidance is intended to help municipal advisors better prepare for potential examinations by clarifying expectations and the scope of SEC staff inquiries. While non-binding, understanding these areas can help firms ensure their compliance programs are robust and that they are ready to provide requested information promptly, thereby potentially streamlining the examination process.