What will the “Eyes and Ears” of the SEC choose to see and hear this year? OCIE announces examination priorities for 2015

Abstract

Purpose

To discuss and interpret the recently published summary of the select priorities of the SEC’s Office of Compliance Inspections and Examinations (“OCIE”) in connection with the National Exam Program for 2015.

Design/methodology/approach

This article highlights the broad OCIE focus areas and provides detail on the associated initiatives.

Findings

OCIE’s priorities appear to place particular emphasis on retail investors and investors saving for retirement and market-wide risks, including cybersecurity. The examination priorities also emphasize OCIE’s evolving ability to analyze data to identify and examine registrants that may be engaged in illegal activity. Of particular interest to private equity fund sponsors, the National Exam Program will continue to conduct examinations that focus on fees and expenses borne by investors in private equity funds.

Practical implications

In view of the OCIE’s priorities, recent public comments by OCIE officials (concerning, for example, presentation of performance data) and our experience representing private equity firms being examined by OCIE, private equity fund sponsors should continue to be prepared for rigorous examinations on these issues and the areas of focus highlighted by the SEC in the past three years.

Originality/value

The article summarizes the OCIE’s recently published examination priorities for 2015 that cover a broad range of market participants and target a variety of their products, practices and procedures, including a continued focus on private equity fund sponsors.

Citation

Berman, K., Harrell, M.P. and Larkin, G. (2015), "What will the “Eyes and Ears” of the SEC choose to see and hear this year? OCIE announces examination priorities for 2015", Journal of Investment Compliance, Vol. 16 No. 2, pp. 26-29. https://doi.org/10.1108/JOIC-04-2015-0022