SEC warns on enduring compliance lapses (FundFire)

The SEC’s Office of Compliance Inspections and Examinations (OCIE) recently identified numerous compliance shortcomings revealed during exams of investment advisers. Many of the problems listed by OCIE have been recurring issues at firms for years, according to Amy Lynch, Founder and President of FrontLine Compliance. Ms. Lynch sees compliance staffing as a major contributor – either not enough staff dedicated to compliance or staff that lacks the requisite skill set needed to perform their job. She also sees another long-running regulatory concern to be compliance procedures that are “boilerplate” and not specifically tailored to the adviser’s business model. See FundFire (subscription required), “Advisory Firms Need to Ramp Up Compliance Resources and Staff: SEC” Also, See our ComplianceAlert, “OCIE Details Rule 206(4)-7 Deficiencies”