sec examination priorities 2021

Focus themes for the 2021 exam priorities include: Retail investor protection with an emphasis on seniors and retirement savings; Information security and operational resiliency; Fintech and Innovation. Other marks used on this site for Smarsh products and services are trademarks of Smarsh Inc. All other trademarks or service marks used on this site are the intellectual property of their respective companies. Further, the Division will prioritize new examination approaches to promote compliance and inspect firms in both broker-dealer and investment adviser/investment company programs with respect to Regulation Best Interest (17 C.F.R. Insider Trading Law and Compliance Answer Book provides you with a step-by-step understanding of the legal requirements imposed upon all investors. A copy of the examination priorities publication is available here. The priorities include several emerging issues, including climate-related risks, technology and Regulation Best Interest (Reg BI). By Amanda Maine, J.D. Key Topics and Learning Objectives: 2021 Examination Priorities and What […] New SEC Division Undertakes 2021 Examination Priorities. Reg BIThe Division will expand the scope of examinations to focus on assessing whether broker-dealers are making recommendations they have a reasonable basis to believe are in customers’ best interests and evaluating broker-dealer processes for compliance and alterations made to product offerings. Information Security and Operational Resiliency. March.10.2021. On March 3, 2021, the SEC OCIE announced its exam priorities for 2021. The Division’s examination priorities reflect areas that present “heightened risks to investors or the integrity of U.S. Capital Markets.” Industry participants should consult with counsel periodically to assess how the SEC’s latest guidance, or newest regulation, may affect their business models and compliance programs. Our internal subject matter experts and our network of external industry experts are featured with insights into the technology and industry trends that affect your electronic communications compliance initiatives. Products and services offered (including certain products identified as having higher risk characteristics), Disclosures and representations made to customers, Prior examination observations and regulatory history, Whether the firm has never been examined, is newly registered, or has not been examined in many years, Material changes in firm leadership or other key personnel, Whether a firm has access to investor assets (i.e., custody). SEC Division of Examinations, 2021 Examination Priorities, at 24. The Division will again be reviewing registrants’ business continuity and disaster recovery plans. With respect to digital assets, as the market continues to evolve, examinations will assess the following: (1) whether investments are in the best interests of investors; (2) portfolio management and trading practices; (3) safety of client funds and assets; (4) pricing and valuation; (5) effectiveness of compliance programs and controls; and (6) supervision of representatives’ outside business activities. The Division will continue to prioritize retail-targeted investments such as mutual funds, ETFs, municipal securities and other fixed income securities, variable annuities, private placements, and microcap securities. These priorities include a greater focus on climate-related risks, conflicts of interests for brokers and investment advisers, and attendant risks related to FinTech. Retail investor protection with an emphasis on seniors and retirement savings; Information security and operational resiliency; Financial technology and innovation including digital assets; The London Inter-Bank Offered Rate (LIBOR) transition; and. The U.S. Securities and Exchange Commission (SEC) recently released its 2021 Examination Priorities. Fairview Investment Services provides comprehensive and ongoing compliance services, including complete examination support. In addition, the Division will continue to prioritize examinations of RIAs that have not been examined for a number of years to focus on whether the compliance programs of RIAs have been appropriately adapted in light of any substantial growth or change in their business models. Through examinations, the Division intends to assess registrants’ understanding of any exposure to LIBOR and their preparations for the expected discontinuation of LIBOR and the transition to an alternative reference rate, in connection with registrants’ own financial matters and those of their clients and customers. The Division’s examination of firms in connection with financial technology and innovation will focus on: The Division will continue to examine whether SEC regulated entities are establishing appropriate anti-money laundering programs including establishing appropriate customer identification programs, meeting Suspicious Activity Reports (“SARs”) filing obligations, conducting due diligence on customers, complying with beneficial ownership requirements and conducting robust and timely independent testing of anti‑money laundering programs. jQuery('#chat').click(function(){ TechnologyThe Division will focus on the use, implementation and integration of technology by firms to facilitate compliance with regulatory requirements. With her expertise in financial services industry, compliance and e-discovery, Marianna counsels Smarsh clients on meeting regulatory obligations, leveraging technology and guidance on best practices related to electronic communications supervision. Whether municipal advisors have satisfied their registration, professional qualification, continuing education and supervision requirements. Client Alert. 2021 SEC Division of Examinations Priorities . Found inside... by major regulators: The US Securities and Exchange Commission (SEC) reacted by including robo advice in its examination priorities, 11 whereas the UK Financial Conduct Authority (FCA), noticing the potential of robo advice, ... The long-awaited 2021 Examination Priorities from the Securities and Exchange Commission’s (SEC) Division of Examinations was recently released. Found inside – Page 861Preferred stock has an advantage in that it has a higher priority claim than common stock. ... paid before common dividends are paid Can be treated as a debt due to redeemable feature Requires reporting to SEC about redeemable preferred ... By clicking "submit", you consent to Smarsh processing your information and storing it in accordance with the Privacy Policy and agree to receive communications from Smarsh and its third-party partners regarding products and services that may be of interest to you. Subscribe to receive a monthly digest of articles exploring regulatory updates, news, trends and best practices in electronic communications capture and archiving. Join our financial services industry leaders to explore 2021 examination priorities and best practices for investment adviser and broker-dealer compliance readiness. The Release represents the ninth year of the Division publishing their priorities. The appropriateness of account selection; Custody and safekeeping of client assets; Valuation of client assets for consistency and appropriateness of methodology. Managing operational risk as a result of dispersed employees in a work-from-home environment. The SEC, through its Division of Examinations (DoE), has published its exam priorities for 2021. Smarsh is a registered trademark of Smarsh Inc. in the European Union. The SEC indicates it will focus on senior investors and those saving for retirement, with a … Texas Revokes IAR’s Registration Over Performance Fees – May 19, 2021. While most of the list echoes priorities from previous years, this year’s version includes a greater concentration on climate-related risk and environmental, social and governance matters. While the SEC release discusses new issues in greater detail than continuing areas of interest, practitioners should continue to focus on these areas and monitor whether the SEC provides guidance throughout the year. SEC 2021 Examination Priorities [March 3, 2021], the SEC’s Division of Examinations (Division) announced its 2021 examination priorities. On March 3, 2021, the SEC’s Division of Examinations [1] announced its examination priorities for 2021. The Division of Examinations (the Division or EXAMS) is pleased to announce our . Report Combines and Replaces Annual Exam and Risk Monitoring Findings Report, Priorities Letter Washington, D.C. – FINRA today published the 2021 Report on FINRA’s Examination and Risk Monitoring Program to inform member firms’ compliance programs by providing annual insights from FINRA’s Examinations and Risk Monitoring programs. Found insideSec . ATTESTATION ( Cont'a ) , ATTORNEY AND CLIENT ( Cont'd ) , of assignment of claim for fees ... for failure to pay tices ' courts over 2021 moneys collected 3771 of motion to determine priorities of attachment or garnishments . SEC Announces 2021 Examination Priorities. On March 3, 2021, the SEC’s Division of Examinations (the “Division”) [1] announced its examination priorities for 2021. The SEC will likely release more in-depth information on the 2021 Examination Priorities in the coming weeks, which will provide further details on who may be examined this year. On March 3, 2021, the Securities and Exchange Commission’s newly renamed Division of Examinations (EXAMS) (formerly the Office of Compliance Inspections and Examinations (OCIE)) announced its 2021 examination priorities. This guidance will serve as a tool to be used by fed. and state regulatory officials in the evaluation of HACCP plans for fish and fishery products. Illustrations. This is a print on demand report. Many of the Division’s 2021 examination priorities, including focus on conflicts of interest for brokers and investment advisers, among others, are perennial risk areas that the Division routinely prioritizes. This includes examining whether registered firms’ business continuity plans were updated, operational and effective, and addressing increased cybersecurity and supervision risks facing firms in a remote environment. The Division will continue to focus on advisers to private funds, and will assess compliance risks, including a focus on liquidity and disclosures of investment risks and conflicts of interest. Sign up to benefit from their deep understanding, tips and best practices regarding how your company can manage compliance risk while unlocking the business value of your communications data. In addition to the focus on issues discussed above, in broker‑dealer examinations the Division will focus on: With respect to its review of municipal advisors, the Division will focus on: Firms should consider the SEC examination priorities as they conduct their annual reviews of policies, procedures and business activities. Manage operational risk due to dispersed employees in a work-from-home environment. Funds’ compliance programs and governance practices with an emphasis on valuation, disclosures to investors, filings with the SEC, personal trading activities, reports to funds’ boards, liquidity risk management programs, and contracts and agreements; Mutual funds or ETFs that have not previously been examined or have not been examined in a number of years; and. On March 3 rd, the SEC Division of Examinations announced their 2021 examination priorities.Earlier this year, on February 2 nd, FINRA released a report of Examinations and Risk Monitoring to provide insight to member firm’s compliance programs.. Unsurprisingly, there is significant overlap between the priorities of the two securities regulatory bodies. The SEC has committed to focusing its investigations on, among other issues, “attendant risks related to FinTech,” conflicts of interest for securities brokers, and investment advisor breach of fiduciary duty. Recently published its exam priorities with a Roadmap to compliance, context-aware extensible! When it comes to noncompliance, 2021, the Securities and Exchange Commission ’ Division. Smarsh and the Smarsh logo are registered trademarks of Smarsh Inc. in United... Impacted by the discontinuation of LIBOR with regard to the MSRB, the Division will continue to focus 2021... 9Th year of the examination Hotline SEC exam priorities consent at any time by emailing privacy @ smarsh.com a! Externally, to promote a strong culture of compliance Inspections and Examinations ( OCIE released. Represents the ninth year of their publication changed for the foreseeable future result of employees! ) —Provides guidance on policy, priorities, at 24 will again be reviewing registrants business. 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