Deficiency Letter Law and Legal Definition

A deficiency letter is a document sent by the Securities and Exchange Commission (SEC) of the United States to the registrants of intended public stock offerings. It details the ways in which the registration statement fails to meet the the required federal disclosures. It is also known as letter of comment or letter of comments.

The deficiency letter results from an examination of a preliminary prospectus of the public offerings by the Office of Compliance Inspections and Examinations (OCIE), an agency of the SEC, which administrates the Compliance Examination Program. A response can be expected within 90 days of completion of the examination. A letter informing the registrant that there are no deficiencies will be sent to the registrant if no deficiencies are found.