On June 14, the United States Securities and Exchange Commission (SEC) released its first ComplianceAlert to help chief compliance officers of SEC-registered firms (including registered investment advisors) learn about some of the common deficiencies being identified by SEC staff during regulatory examinations. ComplianceAlerts will be published periodically and posted on the SEC’s website for public viewing.
According to the SEC’s press release announcing the new program, the SEC hopes “this broader sharing of recent examination findings can benefit compliance officers and help them to proactively fine-tune their compliance and supervisory controls.” The goal is to provide firms with an additional tool to determine whether they are in compliance with federal securities laws. By understanding what the SEC is looking for during a regulatory examination and what other registered investment advisor firms have been cited for, chief compliance officers can implement compliance and supervisory procedures aimed at avoiding the same mistakes others have made.
With the new ComplianceAlerts and the pre-existing CCOutreach Program, the SEC is making a concerted effort to interact and be proactive with chief compliance officers of registered investment advisors . The SEC’s willingness to share information with its firms is a sign of the commission’s goal of encouraging firms to be proactive with their compliance programs.
RIA Compliance Consultants supports this initiative by the SEC and believes registered investment advisors should take full advantage of the ComplianceAlerts. While not all topics discussed in the ComplianceAlerts will focus solely on advisory issues, registered investment advisors should be able to gain valuable knowledge and insight into SEC examination initiatives. Stay tuned to RIA Compliance Consultants as we follow the ComplianceAlerts and pass along valuable insights concerning registered investment advisor examinations.
Posted by Bryan Hill