RIA Compliance Blog
On January 12, 2017, the Office of Compliance Inspections and Examinations (“OCIE”) of the Securities and Exchange Commission (“SEC”) published its examination priorities for 2017. OCIE selects its priorities based on practices and products that it believes to constitute significant risks to investors and the investment markets. It also receives insight from a variety of sources, such as staff from the SEC’s regional offices and other regulators. The priorities for 2017 are primarily based around protection of retail investors, protection of elderly and retiring investors, and addressing market-wide risks like cybersecurity and anti-money laundering.
The first priority that OCIE plans to emphasize is the protection of retail investors. Over the years, new technology has provided investors with new, innovative ways to invest their finances. As a result, the SEC and other regulators must regulate new potential risks that are bound to occur. To address the possible challenges that retail investors face, OCIE plans to implement a number of examination initiatives. For example, it plans to evaluate registered investment advisers and broker-dealers who provide electronic investment advice, such as “robo-advisers.” It also intends to pay particular attention to wrap fee programs and exchange-traded funds (“ETFs”), as well as enlarge its Never-Before-Examined Adviser Initiative program. Finally, OCIE intends to address the challenges related to investment advisers who operate on a multi-branch business model Continue reading ›