During her testimony to the U.S. Senate Subcommittee on Financial Services and General Government Committee on Appropriations, Chair White outlined the SEC’s top priorities for allocating the additional funding requested under their fiscal year 2017 (October 1, 2016, through September 30, 2017) budget submitted by the President.
Among this list is to increase examinations of investment advisers and investment companies by hiring 127 new examiners and to enhance their technology use by:
- Expanding Data Analytic Tools
- Increasing Investments in Information Security
- Redesigning EDGAR
- Improving examinations using risk assessment and surveillance tools
- Enhancing the Tips, Complaints, and Referral system
- Improving enforcement investigation and litigation tracking
- Further modernize their website
- Investing in business process automation and improvements
In her testimony, Chair White articulated that the Commission will continue their current high priority projects into fiscal year 2017, which include, among other things proposing a requirement for investment advisers to obtain third party compliance reviews in order to enhance the compliance of these firms, and congregating Commissioner support for the uniform fiduciary standard for investment advisers and broker-dealers. Additional requests include funds for enhancement of their enforcement division, updating their economic and risk analysis functions, and hiring certain experts to assist with current rulemaking and oversight responsibilities.
As evidenced by Chairman White’s testimony, the SEC continues with their drive to find ways to be able to expand examinations of investment advisers, so now is the time for Chief Compliance Officers to ensure their firm and employees are prepared for an SEC audit.
CCLS can assist firms in their preparation, as our services include performing SEC mock audits, conducting mock interviews of key employees and working with CCOs to enhance their firm’s policies, procedures and internal controls to help ensure a robust compliance program. For more information, please contact us at email@example.com or (619) 278-0020.