Risk Alerts
The following information and risk alerts are provided by the U.S. Securities and Exchange Commission (SEC), Division of Examinations, Office of Compliance Inspections and Examinations (OCIE) and can also be found at https://www.sec.gov/exams
“The SEC Division of Examinations conducts the SEC’s National Exam Program. The SEC Division's mission is to protect investors, ensure market integrity and support responsible capital formation through risk-focused strategies that: (1) improve compliance; (2) prevent fraud; (3) monitor risk; and (4) inform policy. The results of the SEC Division's examinations are used by the SEC to inform rule-making initiatives, identify and monitor risks, improve industry practices and pursue misconduct.”
Electronic Messaging
The SEC Office of Compliance Inspections and Examinations (OCIE) encourages advisers to review their risks, practices, policies and procedures regarding electronic messaging and to consider any improvements to their compliance programs that would help them comply with applicable regulatory requirements.
Network Storage
This SEC Risk Alert highlights risks associated with the storage of electronic customer records and information by broker-dealers and investment advisers in the cloud and on other types of network storage solutions.
Supervision Initiative
The SEC OCIE encourages advisers, when designing and implementing their compliance and supervision frameworks, to consider the risks presented by hiring and employing supervised persons with disciplinary histories and adopt policies and procedures to address those risks.
Cybersecurity & Resiliency
This Risk Alert provides a summary of observations from OCIE’s examinations of registered broker-dealers, investment advisers, and investment companies conducted pursuant to the Cybersecurity Examination Initiative.
National Exam Program Priorities
The SEC Division of Examinations conducts the SEC’s National Exam Program. The Division's mission is to protect investors, ensure market integrity and support responsible capital formation through risk-focused strategies that: (1) improve compliance; (2) prevent fraud; (3) monitor risk; and (4) inform policy.
Advisory Fees & Expenses
Advisers should review their practices, policies, and procedures to ensure compliance with their advisory agreements and representations to clients in light of the fee and expense issues noted in this Risk Alert.
Advertising
The SEC OCIE’s objective in providing this guidance is to encourage advisers to assess the full scope of their advertisements and consider whether those advertisements are consistent with the Advertising Rule, the prohibitions of Section 206, and their fiduciary duties, and review the adequacy and effectiveness of their compliance programs.
