The U.S. Securities and Exchange Commission’s Office of Compliance Inspections and Examinations (OCIE) outlined its priorities for the coming year, including its views on the oversight needs posed by computerized assets.
In the new document, the organization emphasized how the rising computerized assets showcase presents risks to retail investors who don’t necessarily understand how these assets contrast from conventional ones.
“Due to these risks, OCIE will continue to recognize and inspect SEC-registered market participants occupied with this space. Examinations will assess the accompanying: (1) investment suitability, (2) portfolio the board and exchanging practices, (3) safety of customer funds and assets, (4) evaluating and valuation, (5) effectiveness of compliance programs and controls, and (6) supervision of representative outside business activities,” the report noted.
The new release the two builds on and echoes those the organization has put out as of late.
OCIE first included a section on cryptocurrency in its 2018 assessment priorities, when it by and large spoke of the need to look at how service providers safeguard customer assets and whether they appropriately disclose the risks associated with their products.
In 2019, OCIE limited its crypto focus and all the more plainly stated its arrangement to screen advertise participants in terms of portfolio the board, exchanging practices, safety of customer funds, estimating, compliance, and inside controls. This year, the organization emphasized its 2019 objectives while including an assessment objective in regards to the “supervision of worker outside business activities.”
The document also discussed OCIE’s goal to continue inspecting transfer agents’ job in record keeping and the safeguarding of funds and securities. Its principle areas of focus, the document says, include transfer agents who create blockchain innovation and those who give computerized assets services.