March 9, 2018
SEC on-Pace to Examine 20% of Advisers
WHAT HAPPENED?
According to Peter Driscoll, the Director of the Office of Compliance Inspections and Examinations, the Securities and Exchange Commission’s efforts are continuing to increase exam rates. In Fiscal Year 2017, there was an 18% increase over Fiscal Year 2016. This year, the Commission is already on track for a 20% increase.
The steady increase in examination rates is due to an internal restructuring of resources that has allowed for approximately 100 staff members to be reassigned from broker-dealer and market oversight units to the investment advisors and investment companies division.
SEC staff has redesigned and accelerated the exam process by cross-collaborating to develop risk alerts and exam priorities, specifically focusing on areas like cybersecurity and retirement advice with potential for harm.
WHAT DOES THIS MEAN FOR ME?
As noted in the SEC’s proposed budget for fiscal year 2019, the SEC will continue to expand its staff and resources to increase overall examinations. For specific information on the areas and topics the SEC will be focused on this fiscal year, refer to the SEC Office of Compliance Inspections and Examination list of examination priorities.
Fairview is dedicated to assisting clients with implementing a robust compliance program to ensure that clients are prepared for SEC examinations. Please contact Fairview if you have any questions or concerns regarding preparation for SEC examinations.
Sources: https://www.financial-planning.com/news/sec-advisor-exam-rates-see-sharp-uptick
https://www.sec.gov/about/offices/ocie/national-examination-program-priorities-2018.pdf
