The Securities and Exchange Commission’s Division of Examinations (DOE) (formerly, Office of Compliance Inspections and Examinations) recently announced its examination priorities for 2021. Examination priorities are released annually. The 2021 priorities highlight the following nine non-exhaustive areas on which DOE intends to focus during the year.
(1) Retail investors, including seniors and individuals saving for retirement
(2) Information security and operational resiliency
(3) Financial technology (Fintech) and innovation, including digital assets
(4) Anti-money laundering (AML)
(5) The London inter-bank offered rate (LIBOR) transition
(6) Additional focus areas involving registered investment advisers (RIA) and investment companies
(7) Additional focus areas involving broker-dealers and municipal advisors
(8) Market infrastructure
(9) Financial Industry Regulatory Authority (FINRA) and Municipal Securities Rulemaking Board (MSRB)
The 2021 DOE examination priorities are similar to OCIE’s 2020 priorities. DOE will continue to emphasize a commitment to compliance from C-level and similar executives to “set a tone from the top that compliance is integral to the organization’s success and that there is tangible support for compliance at all levels of an organization.”
