Criminal Defense Lawyers

Preparing Executives for SEC Interviews and Testimony

Getting Ready for SEC Interviews – Tips from an Attorney

Being called in for an SEC interview or to give testimony can make anyone feel nervous. As an attorney who has prepared many executives for these situations, I totally get it. The SEC has a reputation for being intimidating. However, going into these interviews prepared and ready to cooperate can really help executives come across as credible and transparent.In this article, I want to share some of my best tips to help you get ready for an SEC interview. These strategies have worked for many of my clients over the years.

Do Your Homework First

Before you head into the SEC interview, make sure you understand what the investigation is about. Review any materials the SEC gave you like document requests, subpoenas, Wells notices, etc. Get familiar with the timeline of events they are looking into and the specific actions or transactions that are being examined.Knowing the background will help you think through the types of questions they might ask. It also helps you give more meaningful responses, instead of getting caught off guard. Check out this SEC article for more on Wells notices and subpoenas.

Refresh Your Memory on Internal Records

In addition to the info the SEC gives you, take time to review any relevant internal documents, emails, meeting minutes, financial records, etc. Make notes about key facts, dates, people involved – things you may need to refer back to during the interview.Having command of the details shows the SEC you are engaged and want to be cooperative. It also helps you come across as credible and confident when answering questions.

Anticipate the Questions They’ll Ask

Based on what you know about the investigation, make a list of questions you think they might ask. Practice answering them and think through your responses ahead of time.It can help to outline your answers to present info clearly and chronologically. Practicing will help the interview flow better once you’re in the hot seat.

Provide Additional Context

When you respond to questions, don’t just give simple yes or no answers. Provide additional context that may be helpful for their investigation.Giving extra details shows the SEC you want to be as transparent as possible. You have nothing to hide. Read this Forbes article for more on how to frame responses.

Mind Your Body Language

How you say something is just as important as what you say. Maintain eye contact, sit up straight, and avoid fidgeting during the interview.Defensive body language can undermine your credibility. Your nonverbals should demonstrate you are taking this seriously and have nothing to conceal.

Take Your Time Responding

It’s totally normal to feel nervous during an SEC interview. Avoid rushing your responses. Take a moment to collect your thoughts before answering. Ask for clarification if you don’t understand a question.Speaking slowly shows you are carefully considering your answers. Don’t feel like you need to fill the silence.

Be Completely Truthful

Above all else, be honest in your responses. Don’t speculate or exaggerate details you can’t remember. Simply say you don’t recall if that’s the case.Trying to cover things up will only raise more red flags. You want to be as straightforward as possible.

Correct Any Misstatements

If you realize you misspoke or got something wrong during the interview, correct the record ASAP. Contact the SEC staff member who interviewed you and clarify the facts.It’s much better to fix mistakes upfront rather than have them come back to bite you later on.

Request Breaks If You Need To

SEC interviews can stretch on for hours. If you need a short break at any point to get a drink, consult with counsel, or just collect your thoughts, don’t hesitate to request one.A few minutes can help you refocus so you stay sharp for the remainder of the interview.

Review Your Notes Afterwards

Take detailed notes during the interview about what was asked and how you responded. Review these closely afterwards while it’s still fresh.Make additional notes about anything you wish you said differently or want to follow up on. This can help jog your memory if you have to testify later.

Don’t Discuss the Interview Yet

Until you get the green light from counsel, avoid discussing the interview details with colleagues. SEC investigations are confidential, so disclosing info prematurely could create problems.

Ask About Next Steps

Before wrapping up, ask the SEC staff about expected next steps. Might additional interviews be needed? Could a Wells call happen?Knowing what’s ahead helps you keep preparing appropriately as the investigation unfolds.By being cooperative, thorough, truthful, and keeping your cool, you can demonstrate integrity during SEC interviews. With the right preparation, you can tackle even the most high-pressure situations head on. Don’t let the intimidation factor get to you. Going in ready to provide transparent responses is key.