New York partner Kay Gordon was quoted in a Compliance Intelligence article titled, “SEC Targets Retail, Retirees in 2015 Exams.”
The Securities and Exchange Commission’s examination of the priorities for the year ahead include a focus on retirement planning investors as well as retail investors and the new products being marketed to them—issues that should be given special attention by chief compliance officers preparing for inspections. The Office of Compliance Inspections and Examination’s 2015 priorities are grouped into three primary areas: retail investors and investors saving for retirement; market wide risks; use of data analytics.
The 2015 priorities show that OCIE’s focus is “more practically product oriented... and driven by market factors,” said Kay. The emphasis on retirement based assets and new products in that space means CCOs should pay special attention to the disclosures that accompany new types of investments that are sold to these investors, she said.
“The SEC is particularly sensitive to the sales practices” firms are employing. CCOs need to ensure “they understand how products are being marketed to particular categories of investors and how different departments and service providers are working together,” Kay said.