SEC’s 2015 Examination Priorities for Investment Advisers

January 13, 2015

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