Peter Driscoll, Acting Director of OCIE (“Office of Compliance Inspections and Examination”), spoke at the GIPS Standards Annual Conference in September of this year. He noted a number of measures the SEC and OCIE have taken to ensure compliance among investment advisors.
Mr. Driscoll noted that the change to more detailed risk alerts may help investment advisors. He also noted that between FY 2015 and FY 2016, examinations by the OCIE increased over 20%, to 2,400. Of these, 1,450 were of investment advisors.
The staff at OCIE has increased by 20%, and this may help the organization conduct more compliance examinations in the future. According to Mr. Driscoll, the OCIE staff are also improving surveillance and risk assessment.
Mr. Driscoll notes that the OCIE does not want a “gotcha” approach that focuses on the punitive. As a result, in addition to examinations, OCIE staff have participated in several initiatives aimed at assisting COOs and investment advisors to remain compliant. Among these efforts are local compliance outreach programs and web-based outreach programs.
Are You Prepared?
For those that have never before been examined or have not examined in years, now is the time to review your compliance program to ensure you are in compliance with federal securities laws, as wells your own internal policies and procedures. While outreach programs may be a good place to start, they tend to be general and may not always answer your specific questions.
If you’d like a customized approach to compliance designed to save you time while offering robust compliance services, contact Vigilant Compliance for an in-depth assessment of your compliance program.