Securities regulators’ overlapping priorities provide guidance for examination preparation

Abstract

Purpose

To summarize and interpret the examination priorities for 2017 published in early January by the Financial Industry Regulatory Authority (“FINRA”) and the Office of Compliance Inspections and Examinations (“OCIE”) of the Securities and Exchange Commission (“SEC”).

Design/methodology/approach

Summarizes some of the most important priorities raised by the OCIE and FINRA in the areas of senior investors, recidivist representatives, product suitability, complex investments and sales practices, cybersecurity, branch offices and anti-money laundering.

Findings

As in recent years, there is a significant overlap in priorities between the two regulators on issues of elderly investors, recidivist representatives, product suitability, and cybersecurity, among others.

Practical implications

Registered investment advisers and broker-dealers should note the key issues raised in both letters so that their compliance programs can address them in their policies, procedures, and controls before their next examination.

Originality/value

Practical guidance from lawyers whose practices focus on securities and broker-dealer enforcement defense.

Citation

Nathan, D.A. and Marshall, E. (2017), "Securities regulators’ overlapping priorities provide guidance for examination preparation", Journal of Investment Compliance, Vol. 18 No. 1, pp. 15-18. https://doi.org/10.1108/JOIC-02-2017-0017