The 2018 SEC Exam Priorities once again listed wrap fee programs as one of their areas of focus this year. This is not unexpected, as the continued push by the SEC to protect retail investors (and the subset of senior/retiring investors) often revolves around the issue of fees. Often times, the SEC looks at how the obfuscation of how fees affect the performance of investments - and the confusion for investors trying to understand these fees is not acceptable.
Preparing for regulatory examinations is a daunting prospect. If you haven't set up the policies and procedures to ensure you can handle such an exam at the drop of a hat, it becomes more than just daunting: it turns into a nightmare.