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The Daily

SEC Outlines its Priorities for Coming Year

Chris Gaetano
Published Date:
Jan 12, 2016
SECURITIES-AND-EXCHANGE-COMMISSION-facebookThe Securities and Exchange Commission has announced the areas that will receive particular focus from the Office of Compliance Inspections and Examinations over the next year. They include: 

Retail Investors – Protecting retail investors, including those investing for retirement, remains a priority in 2016.  OCIE will continue several 2015 initiatives to assess risks to retail investors seeking information, advice, products, and services to help them plan for and live in retirement. It also will undertake examinations to review exchange-traded funds (ETFs) and ETF trading practices, variable annuity recommendations and disclosure, and potential conflicts and risks involving advisers to public pension funds.  
Market-Wide Risks – To help fulfill the SEC’s mission of maintaining fair, orderly, and efficient markets, OCIE will continue its focus on cybersecurity controls at broker-dealers and investment advisers.  New initiatives for 2016 include an evaluation of broker-dealers’ and investment advisers’ liquidity risk management practices, and firms’ compliance with the SEC’s Regulation SCI, designed to strengthen the technology infrastructure of the U.S. securities markets.

Data Analytics – OCIE’s enhanced ability to analyze large amounts of data will assist examiners’ ongoing initiatives to assess anti-money laundering compliance, detect microcap fraud, and review for excessive trading.  Data analytics also will help examinations focused on promotion of new, complex, and high-risk products.

“These new areas of focus are extremely important to investors and financial institutions across the spectrum,” said SEC Chair Mary Jo White.  “Through information sharing and conducting comprehensive examinations, OCIE continues to promote compliance with the federal securities laws to better protect investors and our markets.”