SEC Launches a Dedicated Inspection Team to Oversee FINRA

Marc Wyatt, Director of the Securities and Exchange Commission’s Office of Inspections and Examinations (OCIE), recently announced that the SEC has established “a dedicated FINRA inspection team focused on assessing FINRA’s operations in terms of its core mission of regulating its member broker-dealers, including with respect to its regional examinations of broker-dealers.”

In his Keynote Address at the 2016 National Conference of the NSCP Mr. Wyatt stated that “OCIE is working to enhance our oversight of FINRA because we will be somewhat more dependent on them for broker-dealer exams” due to the recent transition of “a significant number” of OCIE examiners from its broker-dealer examination program to its investment adviser/investment company (“IA/IC”) examination program.

That transition was part of an approximate 20% increase in the number of IA/IC examiners and reflects, among other considerations, the fact that, according to Mr. Wyatt, “… the SEC-registered investment advisers … constitute one of [the SEC’s] fastest growing groups of registrants.”  He went on to say that “over the past two years, over 2,000 new advisers registered with the SEC, joining OCIE’s examination pool.”

And by virtue of the SEC enhancing its oversight of FINRA, it is anticipated that FINRA’s scrutiny of its member firms will also be intensified.

We can help:

As experienced legal and compliance professionals, former senior regulators, and successful business managers, our Management Team and  corps of knowledgeable Consultants at the SEC-FINRA COMPLIANCE Consulting Group recognize that regardless of size or business lines, firms need to have effective solutions to compliance and operational risk issues.  We also understand that as legislative and regulatory scrutiny has intensified, compliance costs have skyrocketed as well, with a potentially devastating impact on your business initiatives and goals.

We can help you reduce those costs and, at the same time, enhance your firm’s compliance efforts in a way that is appropriate for your specific regulatory needs and yet sensitive to your budget.

Our clients include registered investment advisers, broker-dealers, law firms, hedge funds/private fund advisers, insurance companies, and banks. We customize our consulting services to address each client’s specific needs in response to its compliance, regulatory auditing, and risk management requirements and responsibilities.

The SEC-FINRA COMPLIANCE Consulting Group has offices in the New York metropolitan area and Florida, with Consultants located throughout the United States.  For more information on the types of compliance, regulatory and risk management products and consulting services we provide and how we can be of assistance to you and your firm, please visit our website (www.secfinracompliance.com) or contact us directly, either by telephone (1.800.SEC.9906) or e-mail (info@secfinracompliance.com).

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