SEC Office of Compliance Inspections and Examinations Announces Its 2020 Examination Priorities

Earlier this month, the SEC’s Office of Compliance Inspections and Examinations (“OCIE”) announced its examination priorities for 2020.  According to the SEC, the OCIE publishes its examination priorities every year “to enhance the transparency of its examination program and to provide insights into its risk-based approach, including the areas it believes present potential risks to investors and the integrity of the U.S. capital markets.”  SEC Chairman Jay Clayton described this year’s priorities as “identify[ing] key areas of risk, both existing and emerging, that we expect self-regulatory organizations (SROs), clearing firms, investment advisers and other market participants to identify and mitigate.”  The specific priorities for this year include:  retail investors, including seniors and those saving for retirement; market infrastructure; information security; focus areas relating to investment advisers, investment companies, broker-dealers, and municipal advisors; anti-money laundering programs; financial technology and innovation, including digital assets and electronic investment advice; and continuing to oversee the Financial Industry Regulatory Authority (FINRA) and examine the Municipal Securities Rulemaking Board (MSRB).  These priorities are explained in further detail in the SEC’s press release.