- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Aaron Nicodemus2024-06-06T19:22:00
A risk alert from the Securities and Exchange Commission (SEC) listed top reasons why a registered broker-dealer might be the subject of an examination, with factors including length of time since the last exam, prior violations, a whistleblower tip, supervisory concerns, and/or signs of financial stress.
The risk alert, published Wednesday by the SEC’s Division of Examinations, attempted to answer the question, “Why us?” as it relates to registered broker-dealers being chosen to be the subject of a supervisory examination by the agency.
The alert also attempted to answer a second question: “Why now?”
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Examiners with the Securities and Exchange Commission found investment advisory firms have generally done well creating processes to comply with the agency’s amended marketing rule but some have fallen short in ensuring compliance.
The Securities and Exchange Commission’s 2023 examination priorities report laid out areas under the microscope this year, including compliance with the agency’s Marketing Rule and Regulation Best Interest.
The Securities and Exchange Commission issued a risk alert listing deficiencies its examiners found in broker-dealers’ compliance with Regulation Best Interest.
A Bank of England report warned of private equity risk management deficiencies as interest rates remain stagnant, with international coordination important.
Compliance departments at financial institutions must become more involved in ensuring their firm’s operational resiliency to address emerging risks, the Treasury Department’s Office of the Comptroller of the Currency said in its semi-annual risk perspective.
Compliance has been “sleeping on” artificial intelligence, two panelists discussed at Compliance Week’s Women in Compliance Summit. The profession should be positioned to lead on AI governance at the business level.
