In Regulatory Wrap for the week to June 21, Jay Hampshire highlights the sequence of events that demonstrate SEC transparency and the resulting compliance expectations the regulator has of firms.
Written by a human
In this week’s Regulatory Wrap, we recount instances of transparency demonstrated by the SEC, such as the selection process it follows when choosing broker-dealers for examinations and trigger factors it deliberates when deciding fine amounts to issue against firms. With these cases, the SEC illuminates how it monitors compliance and what firms should hone in on to remain aligned with regulation.
1. Last week, we covered the SEC’s speech on the “five principles of effective cooperation,” which was followed by a Risk Alert detailing the factors the regulator considers when deciding if it will conduct an examination against a broker-dealer
2. Earlier in 2024, the SEC defined the decision-making process it utilizes when determining fine amounts to issue against firms for recordkeeping violations
3. In March, the regulator also laid out the considerations it reviews when choosing whether it will issue charges against chief compliance officers for failing to uphold their compliance responsibilities
4. This ongoing transparency seems to differ from the SEC’s “business as usual” statements and demonstrates clear themes, such as the weight of individual assessments; the value of self-reporting, remediation, collaboration, and cooperation; and its reasons for examinations
5. As the SEC illustrates its decision-making processes and how it approaches adherence to compliance regulations, there will be no excuses for ill-preparedness
This episode is brought to you by our Senior Content Writer, Jay Hampshire.
Per its actions, the SEC’s message is clear: firms are expected to strengthen their compliance protections based on the factors it’s outlined and have processes in place to comply with regulatory expectations. Do you have your data in order and policies set to monitor operations?
