According to Rule 206(4)‑7 under the Investment Advisers Act of 1940, registered investment advisers must evaluate, at least annually, the adequacy of their compliance program and the effectiveness of that program’s implementation. Compliance with the annual review requirement is an area of focus for the SEC. This two-part series is structured as a checklist fund managers can adapt and use to streamline and organize their annual reviews. The first article analyzes Rule 206(4)‑7 and sources of guidance on complying with the rule; spells out who should be involved in conducting a fund manager’s annual compliance program review, what information should be gathered for review and what areas should be covered; and notes the questions that SEC examiners are likely to ask about a manager’s annual review during an examination, which managers should be able to answer after having conducted their reviews. The second article provides a non‑exhaustive list of the questions advisers should answer for each substantive area covered in the review. See “Use a Risk Assessment Template to Take a Thoughtful Approach to Compliance” (Apr. 23, 2020).