Carlo Di Florio, the new head of the Securities and Exchange Commission’s (SEC) Office of Compliance Inspections and Examinations (OCIE), says investment advisors can expect “harder and deeper” exams if they are dealing in risky practices, but SEC examiners will also “shorten exams where appropriate.”
Speaking at the IA Watch compliance conference in Washington March 25, Di Florio–who’s been on the job for two months–said that OCIE is embracing SEC Chairman Mary Schapiro’s call for collaboration among all SEC divisions, and that OCIE is “taking a fresh look” at its strategy, structure, and exam process. OCIE, Di Florio said, also continues to hire people with varying skills sets and is taking a “strategic approach to exams” by better understanding the firms it examines. He said that conflicts of interest and insider trading continue to be a “big focus” for OCIE, adding that another big focus is the retailization of complex products like leveraged ETFs, hedge funds, and products to seniors.