Press Release: New "ComplianceAlerts" to Help SEC-Registered Firms Identify Deficiencies and Improve Compliance Programs
The SEC issued its first ComplianceAlert letter on June 14, 2007, to proactively educate registered firms about common compliance deficiencies—such as in performance advertising, Regulation SHO, and sales of CMOs, REITs, and 529 plans—without naming any firms, imposing penalties, or filing charges.
On June 14, 2007, the SEC’s Office of Compliance Inspections and Examinations released its first ComplianceAlert letter to help SEC-registered firms identify and address common compliance weaknesses found during examinations. The alert highlighted issues in investment advisers’ performance advertising, business continuity planning, broker-dealers’ compliance with Regulation SHO, and the sale of complex products including collateralized mortgage obligations, real estate investment trusts, and Section 529 College Savings Plans. No firms were named, no fines were imposed, and no enforcement actions were taken—this was purely a preventive, educational initiative designed to strengthen industry-wide compliance programs.
On June 14, 2007, the SEC released its first ComplianceAlert letter as part of a broader effort to enhance compliance across the securities industry through proactive education rather than enforcement. The letter summarized common deficiencies identified during recent examinations, focusing on areas such as investment advisers’ performance advertising, business continuity planning, broker-dealers’ adherence to Regulation SHO, and the sales of collateralized mortgage obligations, real estate investment trusts, and Section 529 College Savings Plans. No specific firms were named, no penalties were levied, and no charges were filed, underscoring the non-punitive, preventive nature of the initiative. SEC Chairman Christopher Cox and OCIE Director Lori Richards emphasized that the goal was to help chief compliance officers use these findings as a roadmap to fortify their internal controls and avoid future violations. The SEC encouraged firms to review their practices against the highlighted issues and implement improvements to align with federal securities laws. This initiative was part of the SEC’s CCOutreach Program, designed to foster a culture of compliance and better protect investors by addressing weaknesses before they lead to misconduct. Additional ComplianceAlert letters were planned for future release on the SEC’s website to continue this educational outreach.
Extracted insights
- person additional compliancealert letters
- person christopher cox
- person compliancealert letter
- person lori richards
- agency sec chairman
- agency sec office of compliance inspections and examinations
- agency sec staff
- agency Securities and Exchange Commission
- agency select areas that sec examiners recently reviewed during examinations
- SEC released ComplianceAlert Letter
- SEC Office Of Compliance Inspections And Examinations conducts Compliance Examinations Of SEC-Registered Investment Advisers, Investment Companies, Broker-Dealers, And Transfer Agents
- Christopher Cox is SEC Chairman
- Lori Richards is Director Of The Office Of Compliance Inspections And Examinations
- SEC Staff plans to issue Additional ComplianceAlert Letters
- ComplianceAlert Letter summarizes Select Areas That SEC Examiners Recently Reviewed During Examinations
- ComplianceAlert Letter provides information concerning Investment Advisers' Performance Advertising, Business Continuity Planning, Broker-Dealers' Compliance With Regulation SHO, Sales Of Collateralized Mortgage Obligations, Real Estate Investment Trust Products, And Section 529 College Savings Plans
- SEC released ComplianceAlert On June 14, 2007
New "ComplianceAlerts" to Help SEC-Registered Firms Identify Deficiencies and Improve Compliance Programs FOR IMMEDIATE RELEASE 2007-116 Washington, D.C., June 14, 2007 - The staff of the Securities and Exchange Commission today released its first ComplianceAlert letter to help chief compliance officers of SEC-registered firms learn more about common deficiencies and weaknesses that SEC examiners are finding during compliance examinations. This broader sharing of recent examination findings can benefit compliance officers and help them to proactively fine-tune their compliance and supervisory controls. The SEC's Office of Compliance Inspections and Examinations conducts compliance examinations of SEC-registered investment advisers, investment companies, broker-dealers, and transfer agents to determine whether firms are in compliance with federal securities laws and rules, and to help correct deficiencies and weaknesses in compliance and supervisory controls. The SEC staff's ComplianceAlert letter, available on the SEC Web site, summarizes select areas that SEC examiners have recently reviewed during examinations, describes issues that were found, and encourages firms to review compliance in these areas and implement improvements as appropriate. SEC staff plans to issue additional ComplianceAlert letters on the SEC Web site. SEC Chairman Christopher Cox said, "Investors are best protected when securities firms operate in full compliance with the law. Along with our CCOutreach Program, these ComplianceAlert letters are another step in our efforts to continue helping chief compliance officers foster robust compliance in the securities industry." Lori Richards, Director of the Office of Compliance Inspections and Examinations, said, "By sharing information about our examination findings, our goal is to alert firms to areas of compliance weakness so that they can take steps to proactively address any problems. Compliance staff at securities firms have often told us that they really value this kind of information, because they can use it as a roadmap to ensure that their firms have strong compliance and supervisory programs in these areas." The SEC staff's first ComplianceAlert letter provides information concerning recent examination findings in several areas, including with respect to investment advisers' performance advertising and business continuity planning, and with respect to broker-dealers' compliance with Regulation SHO, and sales of collateralized mortgage obligations, real estate investment trust products, and Section 529 College Savings Plans. http://www.sec.gov/news/press/2007/2007-116.htm Home | Previous Page Modified: 06/14/2007
New "ComplianceAlerts" to Help SEC-Registered Firms Identify Deficiencies and Improve Compliance Programs FOR IMMEDIATE RELEASE 2007-116 Washington, D.C., June 14, 2007 - The staff of the Securities and Exchange Commission today released its first ComplianceAlert letter to help chief compliance officers of SEC-registered firms learn more about common deficiencies and weaknesses that SEC examiners are finding during compliance examinations. This broader sharing of recent examination findings can benefit compliance officers and help them to proactively fine-tune their compliance and supervisory controls. The SEC's Office of Compliance Inspections and Examinations conducts compliance examinations of SEC-registered investment advisers, investment companies, broker-dealers, and transfer agents to determine whether firms are in compliance with federal securities laws and rules, and to help correct deficiencies and weaknesses in compliance and supervisory controls. The SEC staff's ComplianceAlert letter, available on the SEC Web site, summarizes select areas that SEC examiners have recently reviewed during examinations, describes issues that were found, and encourages firms to review compliance in these areas and implement improvements as appropriate. SEC staff plans to issue additional ComplianceAlert letters on the SEC Web site. SEC Chairman Christopher Cox said, "Investors are best protected when securities firms operate in full compliance with the law. Along with our CCOutreach Program, these ComplianceAlert letters are another step in our efforts to continue helping chief compliance officers foster robust compliance in the securities industry." Lori Richards, Director of the Office of Compliance Inspections and Examinations, said, "By sharing information about our examination findings, our goal is to alert firms to areas of compliance weakness so that they can take steps to proactively address any problems. Compliance staff at securities firms have often told us that they really value this kind of information, because they can use it as a roadmap to ensure that their firms have strong compliance and supervisory programs in these areas." The SEC staff's first ComplianceAlert letter provides information concerning recent examination findings in several areas, including with respect to investment advisers' performance advertising and business continuity planning, and with respect to broker-dealers' compliance with Regulation SHO, and sales of collateralized mortgage obligations, real estate investment trust products, and Section 529 College Savings Plans. http://www.sec.gov/news/press/2007/2007-116.htm Home | Previous Page Modified: 06/14/2007