Late last week the Securities and Exchange Commission (SEC) announced its 2014 examination priorities. The priorities include a number of issues at financial institutions, including investment advisers and investment companies.
The issues and initiatives for the investment adviser/investment company program include: annual exams mandated by the Dodd-Frank Act, safety of assets and custody, conflicts of interest, marketing and performance, advisers that have not been examined before, wrap fee programs, quantitative trading models, presence exams, payments for distribution in guise, alternative investment companies, and securities lending arrangements.
According to the SEC, the exam priorities, “were selected by senior exam staff and managers and other SEC divisions and offices in consultation with the chair and other commissioners, based on a variety of information and risk analytics.” The process to set the priorities took into account items such as: tips, complaints, and referrals; information reported by registrants in required filings; information gathered through examinations; industry and media publications; and, data maintained in third party databases.
Learn more about the 2014 exam priorities and read the entire document online from the SEC.