The Office of Compliance Inspections and Examinations (OCIE) of the Securities and Exchange Commission (SEC) recently released its 2017 exam priorities. While the priorities continue to focus on protecting retail investors, especially those investing for their retirement, and assessing broad-based market risks, new areas of focus include electronic investment advice, money market funds and the exploitation of senior investors.
OCIE has organized its 2017 priorities around three broad themes:
1. Protecting Retail Investors
In its effort to protect retail investors, OCIE will pursue a variety of examination initiatives focusing on electronic investment advice, including “robo-advisers,” investment advisers and broker-dealers associated with wrap-fee programs, sales practices and regulatory compliance of exchange-traded funds, never-before-examined investment advisers and advisers with multiple locations, and other matters specifically risky to retail investors.
2. Focusing on Senior Investors and Retirement Investments
OCIE will devote increased attention to issues affecting senior and retiring investors by continuing its ReTIRE initiative. ReTIRE focuses on services offered by investment advisers and broker-dealers to retirement accounts, evaluating firm interactions with senior investors and how those firms protect seniors from exploitation.
3. Assessing Market-Wide Risks
In its overall effort to maintain orderly and efficient markets, OCIE will focus on compliance with the SEC’s Regulation SCI (Systems Compliance and Integrity), compliance with anti-money laundering rules, money market funds’ compliance with related amended rules, cybersecurity and other market-wide concerns.
Read the full text of the OCIE's 2017 Exam Priorities.
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