2018 Exam Priorities Announced

The Securities and Exchange Commission’s Office of Compliance Inspections and Examinations (OCIE) announced its 2018 examination priorities on February 7, 2018. The priorities are broken down into five categories:

The Securities and Exchange Commission’s Office of Compliance Inspections and Examinations (OCIE) announced its 2018 examination priorities on February 7, 2018. The priorities are broken down into five categories:

  1. Compliance and risks in critical market infrastructure:
    1. Clearing Agencies
    2. National Securities Exchanges
    3. Transfer Agents
    4. Regulation Systems Compliance and Integrity (SCI) Entities
  2. Matters of importance to retail investors, including seniors and those saving for retirement:
    1. Disclosure of the Costs of Investing
    2. Electronic Investment Advice
    3. Wrap Fee Programs
    4. Never-Before-Examined Investment Advisers (or those not examined in some time)
    5. Senior Investors and Retirement Accounts and Products
    6. Mutual Funds and Exchange Traded Funds (ETFs)
    7. Municipal Advisors and Underwriters
    8. Fixed Income Order Execution
    9. Cryptocurrency, Initial Coin Offerings (ICOs), Secondary Market Trading and Blockchain
  3. FINRA and MSRB
  4. Cybersecurity (governance and risk assessment, access rights and controls, data loss prevention, vendor
    management, training, and incident response)
  5. Anti-money laundering programs (broker-dealers and investment companies)

The description of the priorities is not exhaustive. Staff “will also conduct examinations focused on risks, issues, and policy matters that arise from the market and regulatory developments, new information learned from examinations , or other sources, including tips, complaints, and referrals, and coordination with other regulators.”

The document released by the SEC includes sidebars with tidbits of information, such as announcing the SEC examined approximately 15% of all investment advisers in 2017, up from 8% five years ago.

View 2018 National Exam Program Examination Priorities

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