Carlo DiFlorio, the new head of the Securities and Exchange Commission’s (SEC) Office of Compliance Inspections and Examinations (OCIE), told attendees at the Insured Retirement Institute’s (IRI) annual government, regulatory, and compliance conference in Washington on Thursday, April 29, that of the 800 exams that the SEC had performed in the last year, 80 had been focused on the variable products area, with some of those cases being referred to the SEC’s enforcement division.
Indeed, Amy Lynch, president of FrontLine Compliance, and a former SEC examiner, who also spoke at the IRI conference, says that the SEC is actually performing more variable product exams than FINRA.
DiFlorio noted at the conference that the SEC is currently working with FINRA to update the two agencies’ 2008 joint report on effective practices for variable annuities. An updated report, he said, will be forthcoming.