IM Directors Speaks About His Division’s Risk and Examinations Office

June 18, 2013

Norm Champ, the Director of the SEC’s Division of Investment Management, spoke at the 2013 Insured Retirement Institute Government, Legal & Regulatory Conference in Washington, D.C. about the Division of Investment Management’s Risk and Examinations Office (“REO”).  REO supports the Division’s work primarily through two functions:

• REO maintains an industry monitoring program that provides ongoing financial analysis of the investment management industry, including in particular the risk-taking activities of investment advisers and investment companies.  The REO monitoring program’s work includes analysis of the information the industry provides through various regulatory reports, including Form ADV, Form PF, and Form N-MFP.  The REO monitoring program also maintains an ongoing dialogue with certain strategically important industry participants; and 
• REO conducts an examination program that gathers additional information from the investment management industry to inform the Division to enhance its policy making.

The REO staff recently has had meetings with senior management and fund boards at large fund complexes.  Through these meetings, REO staff has had a first-hand view of  systems, controls and personnel at fund complexes, as well as their and approach to compliance.  REO is trying to enhance dialogue and create better two-way communication between the SEC and the fund industry.
Mr. Champ also spoke about the Division’s recent hire of a Communications Counsel. Derek Newman, who occupies this position, manages the Division’s external communications, working with others on the staff to prepare and disseminate public releases, alerts, reports, joint regulatory reports, and key speeches.  In addition, the Division is reaching out to the industry to find out what additional guidance it needs  about the law. 
He stated that the Division’s website has been redesigned to make it more user-friendly, while at the same time making its contents more comprehensive.  There is a portion devoted to IM news so that viewers can stay up to date on developments in IM.  The Division organized various materials chronologically and topically. It also created a “Guidance Update” section of the website, which it plans to use as a way to get more information out more quickly.  In the “Contact” part of the site, it included an organization chart for the Division.
He concluded his speech by discussing initiatives by the SEC that impact various insurance products.

Click here to access the speech.



Investment Advisers, Investment Companies