[ by Howard Haykin ]

No, even better.  We're talking Securities and Exchange Commission.  We're talking OCIE 2013 Examination Priorities.  And if we post nothing else today, we've earned our keep.

This year's Priorities covers a wide range of issues at financial institutions - B/Ds, IAs, SROs, RICs, HFs, PEs, and more.  But just don't take our word for it.  Listen to what Carlo di Florio, Director of SEC’s Office of Compliance Inspections and Examinations (OCIE) says - and, just in case you didn't know, OCIE is responsible for the National Examination Program, or "NEP":

“We are publishing these priorities to promote compliance and communicate with investors and our registrants about areas that we perceive to have heightened risk.”

 “Our examination program constantly seeks new ways to share our perspectives on key risks and regulatory issues so that registrants’ senior management, compliance and risk managers, among others, can take effective action.

This document, as well as our Risk Alerts and other public statements, are windows through which we can increase transparency, strengthen compliance, and inform the public and the financial services industry about key risks that we are monitoring and examining.”

Introductory Notes.    The 2013 Exam Priorities addresses issues spanning the entire market.  It deals with issues relating specifically to particular business models and organizations. 

Market-wide priorities include fraud detection and prevention, corporate governance and enterprise risk management, conflicts of interest, and technology controls.

Priorities in each program area include:

• For Investment Advisers (IAs) and Investment Companies (ICs). 

1. Presence (on site?) exams for newly registered private fund advisers.
2. Payments by advisers and funds to entities that distribute mutual funds

• For Broker-Dealers (B/Ds).

1. Sales practices and fraud, and compliance with the new market access rule.

• For Market Oversight (SROS).

1. Risk-based exams of securities exchanges and FINRA.
2. Order-type assessment.

• For Clearing and Settlement.

1. For Transfer Agent exams, timely turnaround of items and transfers, accurate recordkeeping, and safeguarding of assets.
2. For Clearing agencies designated as systemically important, conduct annual exams as required by Dodd-Frank Act.

We'll go through each section of the OCIE 2013 Examination Priorities in separate posts, later Friday morning.  In the meantime, you've got the links.  USE THEM.         [SEC PR 13-26, 2/21/13]