The U.S. Securities and Exchange Commission’s (SEC) Office of Compliance Inspections and Examinations’ (OCIE) is planning to scrutinize robo-advisors as part of its industry compliance reviews in the year ahead.
The SEC published the priorities for its OCIE in 2017 on Thursday, in which it highlights a new focus on the electronic provision of investment advice as part of its focus on retail investor protection. The OCIE will also examine wrap programs, among other initiatives to assess the provision of advice, products and services to retail investors.
The possible exploitation of senior investors will also continue to be a focus for the SEC, which says it plans to review investment advisors and broker-dealers that offer variable insurance products to retirement account investors and advisors who manage target-date funds.
In addition, the SEC’s list of priorities for 2017 includes assessing money market funds’ compliance with new rules in that area of the market; enhancing oversight of the Financial Industry Regulatory Authority (FINRA); and cybersecurity.
“These priorities make clear we are continuing to focus on a wide range of issues impacting our markets, from traditional areas such as market-wide risks to new forms of technology including automated investment advice,” says SEC chairwoman Mary Jo White. “Whether it is protecting our most vulnerable senior investors or those investing in the trillion dollar money market fund industry, the OCIE continues its efficient and effective risk-based approach to ensure compliance with our nation’s securities laws.”