Tr?id=566623520170033&ev=PageView&noscript=1

Ä¢¹½´«Ã½

SEC Issues Risk Alert to Broker-Dealers Regarding Examination Criteria

Posted on June 10th, 2024 at 1:27 PM
SEC Issues Risk Alert to Broker-Dealers Regarding Examination Criteria

From the desk of Jim Eccleston at Ä¢¹½´«Ã½

The Securities and Exchange Commission (SEC) has issued a new Risk Alert, advising broker-dealers that their prior disciplinary history, financial stress indicators, and media reports could make them likely candidates for an examination.

ThinkAdvisor reports that the alert aims to help broker-dealers prepare for possible exams by outlining the criteria the SEC’s Examination Division may use to select firms for review and the focus areas for these exams. The alert also lists the types of information and documents that exam staff may initially request during a broker-dealer examination, including a Sample Initial Information Request List.

According to ThinkAdvisor, the SEC exam staff may consider several factors. Those include prior exam history, tips, complaints, referrals involving the firm, the length of time since the last exam, and the firm's customer base, products, and services. Specific offices or branches of a broker-dealer may also be targeted based on identified risk factors, such as customer complaints or outside business activities of personnel. 

 

Ä¢¹½´«Ã½ LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, sec

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

You guys are good!

Mike L.

LATEST NEWS AND ARTICLES

1786980584 Law
August 17, 2026
Federal Judge Allows Investor Class Action Over Lightstone REIT Disclosures to Proceed

A federal judge has allowed investors to proceed with a class-action lawsuit alleging that directors and advisors of three Lightstone Value Plus REITs failed to disclose a significant conflict of interest before shareholders voted on amendments extending the funds' operating periods.

1786734880 Law
August 14, 2026
Cash Sweep Litigation Continues to Drive Legal Costs

Cash sweep litigation continues to increase legal costs for wealth management firms despite the Securities and Exchange Commission's (SEC) decision under the Trump administration to close pending investigations without imposing enforcement penalties, according to AdvisorHub.

1786636784 Law
August 13, 2026
FINRA Orders Centaurus Financial to Pay $1.1 Million Over Variable Annuity Supervision Failures

The Financial Industry Regulatory Authority (FINRA) has ordered Centaurus Financial Inc.