FINRA and the SEC have recently issued statements and taken bold steps to put the industry on watch. FINRA is now being more active with exams, document requests, and specialized investigations - and it is not accepting staffing problems as an excuse from firms unable to respond in a timely fashion. FINRA's Enforcement chief Susan Merrill stated in a recent speech that, "Scaling back a compliance department doesn’t justify not fully cooperating with document requests, even during a challenging economy."

The SEC has stepped up its investigative tools through a significant reorganization of its Enforcement Division. Five new priority areas have been established through the creation of specialized units, including an asset management unit to target misconduct at investment advisers, investment companies, hedge funds and private equity funds. In an announcement, SEC Enforcement chief Robert Khuzami stated that the units would provide, "earlier and better capability to detect emerging fraud and misconduct" and a "greater capacity to file cases with strike-force speed."

Learn about FrontLine Compliance’s Regulatory Response Services

View article “COMPLIANCE WATCH: Staffing No Excuse For Late Documents To Finra” (Dow Jones Newswires for The Wall Street Journal, 1/22/10)

View SEC press release "SEC Names New Specialized Unit Chiefs and Head of New Office of Market Intelligence" (1/13/10)

FrontLine Compliance, LLC is a regulatory compliance consulting firm of former high-level regulatory insiders offering customized services to broker-dealers, investment advisers, investment companies, hedge funds, and insurance company affiliates. Staffed by former SEC and FINRA regulators, and chief compliance officers, FrontLine Compliance provides the kind of industry knowledge, experience and expertise on regulatory issues only available from well-seasoned insiders. For more information about the firm, please visit www.frontlinecompliance.com.

FrontLine Compliance, LLC
phone: 888-518-8070
email: info@frontlinecompliance.com
www.frontlinecompliance.com
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