SEC OCIE Sets 2017 Examination Priorities

In its "Examination Priorities for 2017," the SEC Office of Compliance Inspections and Examinations ("OCIE") set forth priorities based on current issues that "present potentially heightened risk to investors and/or the integrity of the U.S. capital markets." The OCIE will focus future examinations on (i) retail investors, (ii) senior investors, and (iii) market-wide risks. The OCIE's examination priorities follow closely on the heels of FINRA's announced examination priorities.

Specifically, the OCIE prioritized examination in the following areas:

• Retail Investors: The OCIE highlighted: (i) the provision of electronic trading advice (given the DOL's fiduciary rule that drives the market in that direction), (ii) wrap fee programs, including whether the level of trading quality offered is high enough and the programs are cost-efficient for investors, (iii) exchange-traded funds, particularly their suitability and the creation/redemption process,