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SEC 2013 Enforcement Initiatives & Priorities

At a recent SIFMA conference earlier this month, the SEC co-Director of Enforcement Andrew Ceresney discussed the SEC exam and review priorities for 2013. The overall theme is his team intends to be both vigilant and proactive in identifying and reacting to a firm’s compliance deficiencies. Mr. Ceresney commented that his department will be more aggressive on imposing penalties as well. He stated that firms can no longer view a fine or sanctions as the “cost of doing business” any longer. Those who choose not to adhere to the rules and develop a compliance program for the firm to follow “must feel the pain”.

The SEC Enforcement priorities for 2013 are: 1) accounting fraud, 2) registered investment advisory firm and investment advisor (individual) general compliance, misappropriation of funds and misrepresentation of material facts, 3) trading systems and processes, 4) new product due diligence and training, 5) adoption of the Dodd-Frank regulations into the firm’s compliance program.  The SEC will continue to settle cases on a “neither admit nor deny” format as this is important to the settlement process and conserves resources in hearings.

RegMaven strongly encourages firms, registered investment advisors and broker-dealers alike to avoid delay in developing or strengthening your compliance program for your business.  Review areas where improvements are required and assess your resources.  RegMaven can help you with the process and make suggestions on solidifying the areas which are deficient.  Contact us today at info@regmaven.com or 603.965.7791.

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