FINRA and OCIE Announce Examination Areas of Focus

Overview FINRA and OCIE each have issued their 2017 examination priorities.  Not surprisingly, there are many common subjects, including (1) high-risk and recidivist brokers, (2) senior investors, and (3) operational risks such as cybersecurity and anti-money laundering.  FINRA’s Annual Regulatory and Examination Priorities Letter covers fewer subjects than in previous years and, in contrast to … More FINRA and OCIE Announce Examination Areas of Focus

SEC Staff May Begin Routine Inspections of Exempt Reporting Advisers

On November 20, 2015, the Director of the SEC’s Office of Compliance Inspections and Examinations (OCIE) stated in a speech that OCIE would begin conducting routine examinations of “exempt reporting advisers” that file with the SEC.  These remarks were made in a speech to the ABA Hedge Fund Sub-Committee during the ABA’s Business Law Section … More SEC Staff May Begin Routine Inspections of Exempt Reporting Advisers

The SEC Staff Issued Guidance on Outsourcing Compliance Functions – 5 Questions to Ask

In response to an increase in the number of registered investment advisers outsourcing their compliance function to unaffiliated third parties, the SEC’s Office of Compliance, Inspections and Examinations (OCIE) created an Outsourced CCO Initiative and conducted 20 inspections of advisers specifically focused on identifying areas of concern and weakness in such arrangements.  On November 9, … More The SEC Staff Issued Guidance on Outsourcing Compliance Functions – 5 Questions to Ask

SEC’s Director of Enforcement Provides Guidance on CCO Liability

On November 4, 2015, the Director of the SEC’s Division of Enforcement discussed the Division’s perspective on the role of a registered investment adviser’s chief compliance officer (CCO) and how the Division determines whether to charge a CCO in connection with wrongdoing or compliance failures by his or her firm.  This speech is a “must … More SEC’s Director of Enforcement Provides Guidance on CCO Liability