Compliance Help From the SEC

New alerts give CCOs a heads up on exam issues

More On Legal & Compliance

from The Advisor's Professional Library
  • Risk-Based Oversight of Investment Advisors Even if the SEC had a larger budget and more resources, it is doubtful that the Commission would have the resources to regularly examine all RIAs. Therefore, the SEC is likely to continue relying on risk-based oversight to fulfill its mission of protecting investors.
  • Preventing and Dealing with Client Complaints Although the SEC has not provided specific guidance on how client complaints should be handled, a firm’s policies and procedures should provide clear direction how to do so, as neglecting complaints can exacerbate a bad situation.

The Securities and Exchange Commission is now providing a ComplianceAlert letter to chief compliance officers of SEC-registered firms to help them learn more about the common deficiencies and weaknesses that the SEC examiners find during exams.

The ComplianceAlert letter, compiled by SEC staff, is available on the SEC Web site. According to the SEC, the letter summarizes select areas that SEC examiners have recently reviewed during examinations, describes issues that were found, and encourages firms to review compliance in these areas and implement improvements as appropriate. Additional ComplianceAlert letters will be made available on the SEC's Web site (www.sec.gov).

The first ComplianceAlert letter provides information concerning recent examination findings with respect to investment advisers' performance advertising and business continuity planning; with respect to broker/dealers' compliance with Regulation SHO; and sales of collateralized mortgage obligations, real estate investment trust products, and Section 529 College Savings Plans.

Reprints Discuss this story
This is where the comments go.