SEC OCIE 2019 Exam Priorities

On Dec. 20, SEC exam focus on cyber, crypto, retail investors.

  • Put emphasis on digital assets, cybersecurity, retail investor issues, including fees, expenses, and conflict of interest potentially heightened risk to investors, markets.

Retail Investors

  • For seniors saving for investment exams, to focus on disclosure and calculation of
    fees, expenses, and other charges supervision of reps selling products and services.
  • Broker-dealers entrusted with customer assets, and portfolio management, trading.

Cybersecurity and Crypto

  • Emphasis on proper configuration of network storage devices, information security
    governance, and policies and procedures covering retail trade information security.
  • Has been focus and will need to be overseen as risks not going away, may expand.
  • Will keep SEC focus on crypto markets, ICOs how they evolve, review advice given.

FINRA and Market Infrastructure

  • FINRA operations and regulatory programs and the quality of FINRA examinations.
    of broker-dealers, MSRB supervision, regulation for MIAs, muni securities dealers.
  • Market infrastructure still important focus, especially critical are CCPs, settlements.

AML Programs

  • Review if firms appropriately adapt their AML programs to address the obligations.
  • Whether programs, policies are effective, adequate for size, and business of firms.