More On Legal & Compliancefrom The Advisor's Professional Library
- Do’s and Don’ts of Advisory Contracts In preparation for a compliance exam, securities regulators typically will ask to see copies of an RIAs advisory agreements. An RIA must be able to produce requested contracts and the contracts must comply with applicable SEC or state rules.
- Differences Between State and SEC Regulation of Investment Advisors States may impose licensing or registration requirements on IARs doing business in their jurisdiction, even if the IAR works for an SEC-registered firm. States may investigate and prosecute fraud by any IAR in their jurisdiction, even if the individual works for an SEC-registered firm.
In a surprising move, Carlo di Florio, director of the Securities and Exchange Commission’s Office of Compliance Inspections and Examinations will leave the agency and become executive vice president, risk strategy for the Financial Industry Regulatory Authority’s Office of Risk, Emerging Regulatory Issues, Enterprise Risk Management and Strategy.
Andrew Bowden will replace di Florio as director of OCIE and will lead its National Exam Program. Bowden joined the SEC in November 2011 as the National Associate Director for OCIE’s Investment Adviser/Investment Company Examination Program, and he was appointed deputy director of OCIE in September 2012.
In his new post, announced Thursday, di Florio will have overall responsibility for ensuring that FINRA has effective processes for assessing the most significant risks to the investing public and the integrity of markets, and developing strategic responses to mitigate, manage and monitor those risks and industry trends, FINRA said.
In addition, di Florio will manage FINRA's Enterprise Risk Management program to enhance FINRA's internal governance, risk management, quality control and compliance in support of FINRA's mission and strategy. He will start at FINRA on June 24.
"Carlo's expertise as a securities regulator will help FINRA focus its resources in the areas that pose the greatest threat to investors and markets. I am confident his leadership will enhance FINRA's critical role as an investor guardian in America's financial system," said FINRA Chairman and CEO Richard Ketchum, in a statement.
Di Florio joined the SEC in 2010. As the Director of OCIE, he oversaw the SEC's nationwide examination programs for, among other entities, investment advisors, broker-dealers, mutual funds, market exchanges and clearing agencies.
Di Florio led a comprehensive restructuring of the National Exam Program to strengthen the program’s strategy, structure, expertise, processes and technology. The National Exam Program is comprised of a multidisciplinary team of more than 900 staff in 12 offices across the country. As part of the program, SEC examiners conduct risk-targeted exams of regulated entities including broker-dealers, investment advisors, clearing agencies, transfer agents and self-regulatory organizations.
Prior to working at the SEC, di Florio was a partner in the Financial Services Regulatory Practice of PricewaterhouseCoopers, where he specialized in corporate governance, enterprise risk management and regulatory compliance.
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