Compliance Newsflash – November 22, 2017

November 22, 2017

SEC Enforcement Division Issues Report on Priorities and FY 2017 Results
On November 15, 2017, the SEC reported that in its ongoing efforts to protect Main Street investors, they issued a report highlighting its priorities for the coming year as well as a review of enforcement actions that took place during FY 2017. In the report, Co-Directors Stephanie Avakian and Steven Peikin stated their overall enforcement approach: “Vigorous enforcement of the federal securities laws is critical to combat wrongdoing, compensate harmed investors, and maintain confidence in the integrity and fairness of our markets.” They also stated five core principles that will guide their enforcement decision-making: focus on the Main Street investor; focus on individual accountability; keep pace with technological change; impose sanctions that most effectively further enforcement goals; and constantly assess the allocation of resources. “I applaud the excellent work of the men and women of our Enforcement Division. Through their tireless efforts to uncover wrongdoing and hold bad actors accountable, they defend our Main Street investors and support the integrity of our capital markets,” said SEC Chairman Jay Clayton.
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SEC Exam Priorities Said to Focus on Cybersecurity, Seniors in 2018
On November 21, 2017, ThinkAdvisor.com reported that investments involving seniors and cybersecurity compliance are among the concerns expected to make the 2018 examination priority list now being developed by the Securities and Exchange Commission’s Office of Compliance Inspections and Examinations (OCIE), according to industry experts familiar with the process. The list is likely to be released in January and will be the roadmap for OCIE activities for the year with an expected focus on market-wide risks and retail investor risks. “Cybersecurity will be an expanded OCIE priority in 2018, as examiners look to whether sufficient cybersecurity policies, procedures and controls are in place to protect personal information,” Joseph Moreno, an attorney at Cadwalader, Wickersham & Taft, told ThinkAdvisor.
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