Federal Information & News Dispatch, Inc. |
"We are publishing these priorities to highlight areas that we perceive to have heightened risk," said
The examination priorities address market-wide issues and those specific to particular business models and organizations. The market-wide priorities include fraud detection and prevention, corporate governance and enterprise risk management, technology controls, issues posed by the convergence of broker-dealer and investment adviser businesses and by new rules and regulations, and retirement investments and rollovers.
Based on program area, the priorities include:
*For investment advisers and investment companies — advisers who have never been previously examined, including new private fund advisers, wrap fee programs, quantitative trading models, and payments by advisers and funds to entities that distribute mutual funds
*For broker-dealers — sales practices and fraud, issues related to the fixed-income market, and trading issues, including compliance with the new market access rule
*For market oversight — risk-based examinations of securities exchanges and FINRA, perceived control weakness at exchanges, and pre-launch reviews of new exchange applicants
*For transfer agents — timely turnaround of items and transfers, accurate recordkeeping and safeguarding of assets
*For clearing agencies designated as systemically important — conduct annual examinations as required by the Dodd-Frank Act, and pre-launch reviews of new clearing agency applicants
The priorities listed for 2014 are not exhaustive and may be adjusted throughout the year in light of ongoing risk assessment activities. They were selected by senior exam staff and managers and other
*Tips, complaints and referrals, including from whistleblowers and investors
*Information reported by registrants in required filings with the
*Information gathered through examinations conducted by the
*Communications with other U.S. and international regulators and agencies
*Industry and media publications
*Data maintained in third party databases
*Interactions outside of examinations with registrants, industry groups, and service providers
Copyright: | (c) 2012 Federal Information & News Dispatch, Inc. |
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