Last week, the SEC’s Division of Examinations (the Division) announced its 2023 National Exam Priorities. The SEC identified several broad areas of focus highlighting four areas as notably new and significant.
Notable and Significant
- Compliance with New Regulations, specifically including the Marketing Rule, Derivatives Rule and Fair Valuation Rule.
- Private Fund Compliance, including conflicts of interest and disclosures, allocation of fees and expenses, and compliance with the new Marketing Rule.
- Fiduciary Duty, including evaluating if broker-dealers and RIAs are acting in their client’s best interest.
- ESG disclosures and ensuring related investment recommendations in the best interest of investors.
Less Notable, but arguably, not Insignificant!
- Information Security and Operational Resiliency to verify that policies and procedures are adequate and effective to address of cyber-related events.
- Emerging Technologies and Crypto-Assets, suitability and disclosures
- Investment Adviser and Investment Company specific focus
- Broker Dealers Examination focus areas including NSE exam focus, Security-Based Swap Dealers, Muni Advisers, Transfer Agents
- Clearing Agency Exams
- Reg SCI Focused Reviews
- FINRA and MSRB Oversight
- AML Focus
- Libor Oversight Reviews
As we have been saying since the SEC started issuing these priorities annually, this is your best resource to reference as you work on your internal testing program ADV annual updates, and annual reviews.
We will be dissecting the Divisions priorities to provide you with more insight on how use these priorities to modernize your compliance program. Coming Soon!
The SEC3 compliance consulting team can provide guidance on the Division’s 2023 Exam Priorities and assist your firm navigate through its next inevitable examination. For more information, please contact us at info@seccc.com, at (212) 706-4029 or visit us on our website at www.seccc.com.
For over two decades, we have been providing compliance consulting services and servicing as outsourced Chief Compliance Officers. Our professionals have served as SEC regulators and in senior leadership, guiding the industry’s principal compliance association. Our consultants also have hands-on industry experience as chief compliance officers, experienced securities attorneys and senior management of investment advisers, broker-dealers and fund administrators.
What can SEC3 do for you?
SEC3 offers an extensive suite of customizable compliance services for investment advisers, private fund advisers, CPOs, CTAs, investment companies, institutional investors and broker-dealers which can complement your internal compliance program on a one-time or recurring basis depending on your needs.
Call us today at (212) 706-4029 x 229, or shoot us an email at info@SEC3compliance.com so we can set up a time for one of our consultants to discuss your needs and how we can help.
