The SEC’s Office of Compliance Inspections and Examinations (“OCIE”) just delivered a holiday and new year greeting to registered investment advisers … just in case the volatile markets were not enough to keep you on your toes! On December 14th, OCIE issued a Risk Alert related to electronic messaging and on December 20th released its 2019 examination priorities. It may be the busiest time of the year, but when OCIE talks, it is worth listening!
Risk Alert – Observations from Adviser Exams Relating to Electronic Messaging
On December 14, 2018, OCIE issued a Risk Alert to share the results of its limited-scope examination initiative of registered investment advisers. The initiative sought an understanding of enterprise and employee use of various forms of electronic messaging. The Risk Alert addresses the regulatory risks attendant to the use of electronic messaging and the challenges confronting advisers and their employees when complying with the Investment Advisers Act. OCIE was compelled to dig into electronic messaging after noticing the increased use of social media, texting, and other types of electronic messaging apps, and the pervasive use of mobile and personally owned devices for business purposes.Read More