Prepare to Comply With SEC 2016 Exam Priorities
The 2016 Examination Priorities from the U.S. Securities and Exchange Commission (SEC) provide financial services companies – including investment companies, investment advisers, broker-dealers, transfer agents, and clearing agencies – a valuable road map to avoiding compliance violations. This article explains the three principal areas of focus this year: protecting retail investors and retirement savers, assessing marketwide risks, and using data analytics to detect illegal activity. Notably, this year the SEC is examining select advisers and firms that previously haven’t been subject to exams. Those that haven’t undergone an exam in the past could be in for an unpleasant surprise if they fail to heed the announced priorities and prepare accordingly.