2013 Examination Priorities of the US SEC’s Office of Compliance Inspections and Examinations

March 14, 2013

The Office of Compliance Inspections and Examinations (“OCIE”) of the Securities Exchange Commission (“SEC”) on February 21, 2013 announced its examination priorities for this year. These highlight market-wide issues such as fraud detection and prevention and the mitigation and management of conflicts of interest, as well as specific issues relating to the National Examination Program’s (“NEP”) four program areas: (i) investment advisers and investment companies; (ii) broker-dealers; (iii) clearing and transfer agents; and (iv) market oversight.

Each year, OCIE, which manages the NEP, announces its examination priorities, which identify areas that the SEC Staff and senior management have concluded present increased risks to investors and registrants. “We are publishing these priorities to promote compliance and communicate with investors and our registrants about areas that we perceive to have heightened risk,” said Carlo V. di Florio, Director of OCIE. According to the SEC press release, the announced list is “not exhaustive,” and may be modified as the year progresses. The SEC Staff and management created the priorities list after conferring with each of the Commissioners, and examining resources including (i) tips, complaints and referrals from whistleblowers, customers and investors; (ii) information provided by registrants in required SEC filings; (iii) data kept in third-party databases; and (iv) information collected in examinations by the SEC and other federal regulators.

Read “2013 Examination Priorities of the U.S. SEC’s Office of Compliance Inspections and Examinations.”