Speak To A Live Person: 888.302.4594 Request A Demo

2016 SEC Exam Agenda

Monday, March 21, 2016

On January 11, 2016 the SEC announced the Office of Compliance Inspections and Examination (OCIE)’s 2016 exam priorities. One of the areas of focus mentioned in the press release has the potential to greatly affect not just SEC registered investment advisers, but state registered investment advisers as well.

One of Red Oak’s employees wrote:  “When I worked as an auditor for the state, I saw many state registered investment advisers who dealt mainly, if not solely, with ETF’s. At face value they are a moderate compromise to the higher expenses and restricted access to real time trading associated with traditional mutual funds. Upon reading the SEC’s summary of its 2016 exam focus I noted that one of its areas of focus will involve greater scrutiny in the marketing of exchange traded funds (ETF’s) and variable annuities.”

They state that their area of focus in regards to these two products will include trading practices, variable annuities recommendations, disclosure and potential conflicts, and risks involving advisers to public pension funds. I assume the latter was included in the scope as a means of getting the ball rolling on what the regulatory industry feels is an area of concern until the current administration can finalize the DOL Fiduciary Rule, and the focus on whose role it is to regulate these issues; the SEC or DOL. You can read the full release here and prepare yourself for a possible SEC exam this year.

About Red Oak Compliance Solutions

Red Oak Compliance Solutions is the global advertising review software of choice in the financial services industry. It is a comprehensive suite of SEC 17A-4 compliant features that are 100% books and records compliant and provides clients with 35% faster approvals and 70% fewer touches or better. We also offer Smart Review(SM), which solves for the storage and maintenance of disclosures, helping firms reduce risk, decrease review times, and increase the speed of distribution of marketing materials. Smart Registration(SM) automates the licensing and registration management process to help reduce regulatory risk and time spent on manual processes. Overall, Red Oak allows firms to minimize risk, reduce costs, and increase compliance review process effectiveness and efficiencies.