NSCP REGULATORY ADVISORY COMMITTEE MEMBER SURVEY
SEC RISK ALERTS
NSCP’s Regulatory Advisory Committee conducted a Member Survey to collect data as to what SEC regulations members felt they need more guidance on and would like to have the SEC address in a Risk Alert. The survey also asked what specific information members would like to see addressed or provided.
The survey was conducted during the period June 15, 2023 – July 7, 2023. There were 135 respondents to the survey.
Below is a summary of NSCP members responses.
Question 1: Which specific rules do you need more guidance and would like the SEC to address in a Risk Alert?
Results by Number of Responses
Question 2: Within a Risk Alert, what specific information would you like to see addressed or provided?
Best practices based on SEC staff observation (9).
Clarification of regulations and guidance as to how firms are expected to comply with the rules (2).
Deficiencies seen during exams.
Detailed examples of violation/non-violation.
Details of what a firm / registrant should do to comply.
Expand best practices - give firms guidance on what they should do and be specific.
How common deficiencies can be avoided and suggestions for improvement. (2)
How a firm can implement a rule especially, new rules.
I would like to see Risk Alerts sent out via email to SEC registrants.
Implementation expectations/suggestions and related regulatory examination procedures.
It would be great to see an enumeration of procedures firms should be employing. Policies are straightforward, but the actual practices are what most people don't find clear.
It's always helpful to have examples.
More clarity with the rule's application and specific deficiencies noted by the examination staff.
More concrete examples.
More definition around specific exam interests.
Provide specific examples of dos and don'ts
I recommend that the SEC deliver risk alerts directly to registrants.
Not a regurgitation of the rule, rather guidance and samples. Also, the SEC should provide realistic best practices.
Observations from exams.
Compliance oversight responsibilities.
Prefer not just a regurgitation of the rule and more practical guidance. Older alerts gave more concrete guidance.
Proposed practices and practical suggestions on how to comply.
Samples or specific examples.
Similar to a 'no-action' letter, what can an IA do to ensure they are in compliance with the rule.
Specific deficiencies and corrective actions plus additional testing procedures expected by the SEC.
Specific details/examples with practical application.
Specific examples the SEC has seen that have been both 'satisfactory' to comply with rules as well as specific examples the SEC has seen in which firms did not satisfactorily comply with a rule(s).
Summary of rule requirements.
What the SEC expects firms to do to address deficiencies.
What to expect, best practices and maybe even some examples of what they would like to see.