SEC sets marketwide risks, money market funds and cybersecurity as top examination priorities

  • As part of efforts to protect retail investors, the SEC said it will examine firms that do robo-advising and wrap fee programs that charge a single bundled fee for advisory and brokerage services.

    Other priorities for the year ahead include electronic investment advice, money market funds, cybersecurity controls and preventing the financial exploitation of senior investors, the SEC said.

  • Never-Before Examined Investment Advisers: Similar to last year, the staff remains focused on its Never-Before Examined Adviser initiative. However, this year, the staff notes that it will expand the program to "include focused, risk-based examinations of newly registered advisers as well as of selected advisers that have been registered for a longer period but have never been examined by OCIE." Thus, it's fair to say that all SEC-registered investment advisers that have never before been audited should be prepared for an audit in the near future.