"Valuation is an area we're really focused on now," Lori Richards, head of the SEC's office of compliance, inspections and examinations, told reporters after speaking Thursday at an Investment Advisers Association conference. Richards said the inquiry includes examination of "valuation processes with regard to subprime securities." She declined to say when the agency's findings might be released publicly.

Richards told the advisery group that SEC examiners are taking a close look at how investment advisery firms value illiquid assets, including the level of expertise and independence of those doing the valuations.

"We also will be looking at the use of dealer quotes in pricing," Richards added.

Additionally, Richards said SEC examiners are paying close attention to the disclosure that advisers provide to investors regarding portfolio holdings of structured products such as collateralized debt obligations and collateralized mortgage obligations.