Never been examined by the SEC? Get ready. In a recent announcement of its 2014 priorities, the 4,000 or so advisors who have never been examined by the agency are in its crosshairs. Most new ones, however, are hedge funds and private equity funds that were not registered or regulated by the SEC prior to the Dodd-Frank Act.
ThinkAdvisor lists IRA rollovers and hybrid advisors as high on the SEC’s priority list, as well as wrap fee programs and mutual fund distribution payments. BDs are expected to be questioned about sales practices and fixed income.
Perceiving a heightened risk, the SEC would like to step up the scope and number of examinations — a move supported by several industry and consumer groups — but without dramatically increased funding, current resources will limit their activities.
