The SEC exam priorities for 2024 underscore the importance of compliance and recordkeeping within financial services. The focus will be on practices and products that pose risks to investors or the markets. In light of over $2.6bn in fines due to recordkeeping failures, the SEC will scrutinize unmonitored communication channels and the capture of essential records.
Demonstrating Effective Compliance Programs The SEC’s priorities vary by sector, encompassing investment advisers, broker-dealers, and other market participants like municipal advisers and transfer agents. A common requirement across these sectors is the ability to demonstrate effective compliance programs. This includes ensuring policies and procedures are fit for purpose and operate effectively.
Investment Advisers: A Closer Look For investment advisers, the Compliance Rule mandates the accurate creation and secure maintenance of records. It also demands privacy protection for client records. Marketing practices of investment advisers will be examined, especially their written policies and procedures, and the substantiation of their processes.