SEC Chair Wants Third Party Compliance Reviews of Advisers
SEC Chair Mary Jo White expressed her support for mandatory third party compliance reviews of investment advisers. During her annual address at the “SEC Speaks” conference, she said that she will “continue to work to develop support from my fellow Commissioners… to bring forward a workable program for third party reviews to enhance the compliance of registered investment advisers.” Other senior members of the SEC have previously recommended required third party reviews as a way to increase adviser exams beyond the 10% of advisers that the SEC annually reviews (see http://blog2.cipperman.com/2015/10/sec-will-recommend-requiring-third-party-compliance-reviews-for-rias/). Ms. White also expressed her support for “a uniform fiduciary duty for investment advisers and broker‑dealers.”
OUR TAKE: We think the SEC will move forward to require third party compliance exams. The only open issues are the logistics around timing, scope, qualifications, and required elements.