The Securities and Exchange Commission (SEC) has announced its 2014 examination priorities based on both internal and external communications, data, tips, complaints, referrals, and more.
These are the areas the SEC will examine throughout the year because they have been flagged as areas with heightened risk, but they could be modified as needed.
For 2014, the following five areas will be closely examined by the SEC:
For investment advisers and investment companies — advisers who have never been previously examined, including new private fund advisers, wrap fee programs, quantitative trading models, and payments by advisers and funds to entities that distribute mutual funds
For broker-dealers — sales practices and fraud, issues related to the fixed-income market, and trading issues, including compliance with the new market access rule
For market oversight — risk-based examinations of securities exchanges and FINRA, perceived control weakness at exchanges, and pre-launch reviews of new exchange applicants
For transfer agents — timely turnaround of items and transfers, accurate recordkeeping and safeguarding of assets
For clearing agencies designated as systemically important — conduct annual examinations as required by the Dodd-Frank Act, and pre-launch reviews of new clearing agency applicants
What do you think? Good? Disappointing? Bad? Leave a comment and share your thoughts on the SEC’s 2014 examination priorities of the finance and investment industries.