SEC Exam Focus Remains Consistent

The SEC'S Office of Compliance Inspections and Examinations announced its examination priorities to highlight areas of "heightened risk" for registrants.  (See http://www.sec.gov/news/press/2013/2013-26.htm.).

The OCIE also disclosed areas of emerging risks for registrants, as well as topics to consider the priorities.   Generally, these priorities apply to all registrants as well as specifically to OCIE's investment adviser and broker-dealer examination programs.  The focus areas for investment advisors include:  safety of assets; conflicts of interest related to compensation arrangements and to allocation of investment opportunities; and marketing of performance.  Moreover, OCIE stated that, for investment advisers, money market mutual funds and compliance with exemptive orders will also be considered.