On January 7, 2020, the U.S. Securities and Exchange Commission’s (“SEC”) Office of Compliance Inspections and Examinations (“OCIE”) announced its examination priorities for 2020.
The priorities continue to focus on protecting retail investors and assessing ongoing and emerging market-wide risks.
Advisers will note that OCIE continues to focus in 2020 on many of the critical investor protection and market integrity issues it did in the 2019 priorities. In addition, this year’s priorities have OCIE emphasizing the critical role that CCOs and compliance staff play at their firms, noting that “culture and tone from the top are key.” This year’s priorities also focus on new developments and issues, such as Regulation Best Interest (Reg BI), LIBOR transition, Environmental, Social and Governance (ESG) investing, and new AML beneficial ownership requirements. The priorities also put greater emphasis on operational resilience, including cybersecurity, privacy, information security and vendor risk management. Finally, the priorities explicitly focus on private funds.
ACA COMPLIANCE GROUP