SEC’s 2015 Examination Priorities for Investment Advisers

January 13, 2015

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The Office of Compliance Inspections and Examinations (“OCIE”) of the U.S. Securities and Exchange Commission (“SEC”) released its selected 2015 examination priorities for investment advisers, broker-dealers and transfer agents.  Click here to view.

According to the OCIE, areas of focus for investment adviser examinations by the SEC staff include, but not limited to, the following: (a) suitability of fee v. commission accounts for a dually registered investment adviser/broker-dealer; (b) suitability of an investment adviser’s recommendation of a fee structure relative to other fee structures offered by the investment adviser; (c) whether an investment adviser is using improper or misleading practices when recommending  a client rollover assets from an employer-sponsored 401(k) plan to an IRA, especially when they pose greater risks or higher charges; (d) the due diligence conducted, disclosures made and suitability of an investment adviser’s recommendation to invest retirement assets into complex structured products and high yield securities; (e) an investment adviser’s supervision of its branch offices; and (f) an investment adviser’s cybersecurity compliance and controls.

If your investment adviser firm needs assistance in preparing for an SEC examination, please contact us at 877-345-4034.

Posted by Bryan Hill
Labels: Cyber Security, Cybersecurity, Reverse Churning, SEC, SEC Inspection