Compliance and Regulatory Services (“CARS”) Hot Topics

March 16, 2015

In this publication, the experts of EisnerAmper CARS will comment on two very important current issues: cybersecurity and the SEC hiring for 300 new positions in OCIE and Enforcement.

Cybersecurity Is an Ever-Growing Area of Concern

After the SEC conducted a cybersecurity sweep examination of broker-dealers and registered investment advisors, the findings were that many firms have addressed cyber risk but still require improvement in the design of their cybersecurity framework, including infrastructure and controls to reasonably ensure client data is not at risk. We are seeing many requests from registered advisors and broker-dealers for assistance in developing or remediating their cybersecurity programs in accordance with various SEC pronouncements and recommendations and adopting a cybersecurity program that meets the standards outlined in the National Institute of Standards and Technology whitepaper, "Framework for Improving Critical Infrastructure Cybersecurity."

SEC Hiring for Enforcement Positions

The SEC recently announced that it will be hiring for 300 new positions for its Office of Compliance Inspections and Examinations and Division of Enforcement. We believe this action speaks for itself. The SEC is expanding its reach into all corners of registered investment advisor and broker/dealer operations and arming itself with additional resources to ensure compliance with its initiatives through its examination program and enforcement attorneys.  

Recent Pronouncements, Announcements, Release and Speeches

Below, for your convenience, we've aggregated recent postings from the SEC and FINRA.

SEC News

Feb. 27, 2015 SEC Halts Ponzi-Like Scheme by Purported Venture Capital Fund Manager in Buffalo
Feb. 27, 2015 Fee Rate Advisory #4 for Fiscal Year 2015
Feb. 27, 2015 SEC Announces Agenda for March 4 Meeting of the Advisory Committee on Small and Emerging Companies
Feb. 26, 2015 Readout of SEC Chair Mary Jo White’s Meeting with European Union Financial Services Commissioner Jonathan Hill
Feb. 26, 201 SEC Salt Lake Office Director Karen Martinez to Retire From Public Service
Feb. 24, 2015 SEC Charges Goodyear With FCPA Violations
Feb. 19, 2015 SEC Charges Brothers-in-Law in Louisiana With Insider Trading
Feb. 19, 2015 SEC Charges New York-Based Brokerage Firm and CEO With Committing Fraud During CDO Liquidation Auctions
Feb. 18, 2015 SEC Halts Colorado-Based Pyramid Scheme
Feb. 13, 2015 SEC Announces Fraud Charges Against Purported Hedge Fund Manager
Feb. 12, 2015 Pamela C. Dyson Named SEC Chief Information Officer
Feb. 12, 201 SEC Announces Agenda, Panelists for Proxy Voting Roundtable
Feb. 12, 2015 SEC Charges Mutual Fund Adviser in Connection With Improper Handling of Fund Assets
Feb. 11, 2015 Heather Seidel Named Chief Counsel in SEC’s Division of Trading and Markets
Feb. 11, 2015 SEC Announces Charges Against Atlanta Man Accused of Insider Trading in Advance of Tender Offer
Feb. 10, 2015 SEC Announces Half-Million Dollar Clawback from CFOs of Silicon Valley Company That Committed Accounting Fraud
Feb. 10, 2015 SEC Charges Former Brokerage CEO for His Role in Fraudulent Scheme
Feb. 9, 2015 SEC Proposes Rules for Hedging Disclosure
Feb. 6, 2015 SEC Imposes Sanctions Against China-Based Members of Big Four Accounting Networks for Refusing to Produce Documents
Feb. 5, 2015 SEC Charges Chicago-Area Alternative Energy Company for Accounting and Disclosure Violations
Feb. 5, 2015 SEC Charges Four in California Insider Trading Ring
Feb. 4, 2015 SEC Approves 2015 PCAOB Budget and Accounting Support Fee
Feb. 3, 2015 SEC Names David Grim as Acting Director of the Division of Investment Management
Feb. 3, 2015 SEC Alerts Investors, Industry on Cybersecurity


Feb. 26, 2015 Conflicts, Conflicts Everywhere – Remarks to the IA Watch 17th Annual IA Compliance Conference: The Full 360 View Julie M. Riewe, Co-Chief, Asset Management Unit, Division of Enforcement
Feb. 25, 2015 Insights into the SEC's Risk Assessment Programs Mark J. Flannery, Chief Economist and Director, Division of Economic and Risk Analysis
Feb. 25, 2015 Remarks at SIFMA's 2015 Anti-Money Laundering & Financial Crimes Conference Andrew Ceresney
Feb. 20, 2015 Remarks at the "SEC Speaks" Conference 2015: A Fair, Orderly, and Efficient SEC Commissioner Michael S. Piwowar
Feb. 20, 2015 Remarks at the "SEC Speaks" Conference Commissioner Kara M. Stein
Feb. 20, 2015 Remarks at The SEC Speaks in 2015 Commissioner Daniel M. Gallagher
Feb. 20, 2015 Setting Forth Goals for 2015: Address to Practising Law Institute's SEC Speaks in 2015 Program Commissioner Luis A. Aguilar
Feb. 20, 2015 Effective Disclosure for the 21st Century Investor Rick A. Fleming, Investor Advocate
Feb. 20, 2015 Chairman's Address at SEC Speaks 2015 Chair Mary Jo White
Feb. 13, 2015 Why is the SEC Wavering on Waivers? Remarks at the 37th Annual Conference on Securities Regulation and Business Law Commissioner Daniel M. Gallagher
Feb. 12, 2015 Opening Remarks on SEC Investor Education and Advocacy to Military Service Men and Women at Ft. Hood Commissioner Daniel M. Gallagher
Feb. 10, 2015 Rule 14a-8: Conflicting Proposals, Conflicting Views Keith F. Higgins, Director, Division of Corporation Finance
Feb. 9, 2015 The Volcker Rule: Observations on Systemic Resiliency, Competition, and Implementation Commissioner Kara M. Stein
Feb. 5, 2015 Advocating for Investors Saving for Retirement Commissioner Luis A. Aguilar
Feb. 5, 2015 Protecting Elderly Investors from Financial Exploitation: Questions to Consider Rick A. Fleming, Investor Advocate


Feb. 23, 2015 FINRA Investor Education Foundation and United Way Grant $1.5 Million for Financial Education
Feb. 12, 2015 Statement of Marcia E. Asquith, Senior Vice President and Corporate Secretary, on the Loss of Harvey J. Goldschmid
Feb. 12, 2015 FINRA Board Approves $50 Million Contribution to the FINRA Foundation
Feb. 11, 2015 Erozan Kurtas Named Head of FINRA's New Office of Advanced Data Analytics
Feb. 05, 2015 FINRA Foundation-Funded Study Documents Effectiveness of State Financial Education Mandates
Feb. 03, 2015 FINRA Issues Report on Cybersecurity Practices, Cybersecurity Investor Alert
Feb. 02, 2014 FINRA Investor Education Foundation and the American Library Association  Announced $l.8 Million in Grants to Public Libraries to Support Financial Literacy
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