SEC and FINRA Issue Examination Priorities for 2015

The SEC's Office of Compliance Inspections and Examinations ("OCIE") and FINRA have released their 2015 examination priority letters to the public.  These letters are designed to highlight the key areas that will be examined during a regulatory inspection in 2015.   For example, OCIE's letter identified priorities that focus on: (1) retail investors and investors saving for retirement; (2) assessing issues related to market-wide risks; and (3) analyzing data to identify illegal activity, such as excessive trading and penny stock pump-and-dump schemes. FINRA's letter identified priorities that focus on the following: (1) sales practices; (2) financial and operational issues; and (3) market integrity matters.

It is imperative, given the multiple areas of focus for 2015, that investment advisers and broker-dealers carefully review current practices and procedures to ensure that all facets of their operations are fully compliant.  If you have additional questions, please reach out to your Sadis & Goldberg contact for further clarification.

 

Cheryl Spratt