The SEC Examines only 16% of RIAs in 2021, doesn’t expect the number to increase in the future.
According to an article in Investment News on Friday, the SEC in 2021 only examined 16% of the approximately 15,000 registered investment advisors (RIAs), and may not be able to reach that number again in the future. This translates to fewer than 1 in 5 RIAs.
The article, citing an SEC official speaking at an Investment Adviser Association compliance conference in Washington said that while the SEC’s annual goal is only 15% coverage of RIAs, the regulator may not be able to continue at that pace since RIAs are “growing rapidly,” yet the number of examiners has stayed the same.
According to the article, while the SEC staff will be able to return to the office in early June post pandemic, the regulator is “not in a rush” to go back to in-person examinations.
The article notes that the SEC will probably be releasing examination priorities soon and expects that one of its top priorities will be the oversight of private funds, due to the rapid growth of the private securities market.
The compliance conference also reportedly covered enforcement, noting a recent sanction for JP Morgan over its failure to maintain employee communications records over WhatsApp and digital messaging technology.
The panel also reportedly discussed environmental, social and governance investing and the agency’s recent SG enforcement task force that was launched last year.
The panel discussed the recent sanctions for Wahed Invest in connection with allegedly making misleading statements because it marketed itself as providing advisory services compliant with Shariah law but didn’t establish related policies and procedures.
For more information, please see:
JP Morgan Securities Hit with $125 Million for Widespread Recordkeeping Failures
Registered Investment Advisor (RIA) – Securities Fraud Attorneys
Potential to Recover Financial Losses
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The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Seattle, Washington. The firm represents investors in FINRA arbitration claims throughout the country. For more information on the firm, visit https://whitesecuritieslaw.com.
Tags: Jp Morgan sanctions, RIA sanctions, SEC examinations, SEC sanctions, securiteis attorney, SG enforcement, Wahed invest Last modified: March 7, 2022
