On June 29, 2011, the SEC’s Office of Inspector General released a report assessing the SEC’s processes for ensuring adherence to the conditions under which exemptive orders and no-action letters are granted. The report concluded that the SEC’s divisions that issue exemptive relief do not have a coordinated process for reviewing compliance with the conditions and representations contained in the orders and letters, and instead rely on the Office of Compliance Inspections and Examinations (OCIE) to review compliance as part of its examinations. The report emphasizes the importance of monitoring compliance because the exemptions allow companies to conduct activities that, without the relief, could violate securities laws and regulations. Accordingly, the report makes five recommendations intended to enhance the SEC’s oversight of compliance with exemptive relief and increase coordination with OCIE in the examination of companies for compliance with conditions and representations contained in exemptive relief. In response to the report, the SEC was asked to submit a corrective action plan within 45 days.