SEC’s Office of Compliance Inspections and Examinations Releases 2018 Exam Priorities– February 12, 2018 by Peggy McCaffrey

On February 7, 2018, the Security and Exchange Commission’s Office of Compliance Inspections and Examinations (OCIE) released its 2018 examination priorities in its effort to continually improve compliance, prevent fraud, identify and monitor risk, and inform policy.
 
OCIE’s priorities center around five main themes: 

  1. Matters relevant to retail investors — especially those saving for retirement with a focus on fee and expense disclosures; and oversight of products and services sold to investors, ensuring investors receive adequate disclosure about the risks of certain types of investments, especially cryptocurrency and initial coin offerings;
  2. Compliance of critical participants in capital markets — such as clearing agencies, national securities exchanges and transfer agents — especially regarding recently effective rules;
  3. Emphasis on governance and risk assessment, access rights and controls, data loss prevention, vendor management, training and incident response over cybersecurity;
  4. Appropriate implementation of anti-money laundering programs — especially due diligence of customer relationships, proper monitoring and timely reporting of suspicious activity;
  5. Continued oversight of Financial Industry Regulatory Authority (FINRA) and evaluation of the effectiveness of the Municipal Securities Rulemaking Board (MSRB). 

Obviously this list is not all-inclusive; OCIE remains flexible in its efforts to cover emerging risks and issues developing in the marketplace. 

Read the full text of the OCIE’s 2018 Exam Priorities.
 
Please contact a member of your service team, or contact Peggy McCaffrey at pmccaffrey@cohencpa.com for further discussion. 
 

Cohen & Company is not rendering legal, accounting or other professional advice. Information contained in this post is considered accurate as of the date of publishing. Any action taken based on information in this blog should be taken only after a detailed review of the specific facts, circumstances and current law.