A risk alert from the Securities and Exchange Commission (SEC) listed top reasons why a registered broker-dealer might be the subject of an examination, with factors including length of time since the last exam, prior violations, a whistleblower tip, supervisory concerns, and/or signs of financial stress.
The risk alert, published Wednesday by the SEC’s Division of Examinations, attempted to answer the question, “Why us?” as it relates to registered broker-dealers being chosen to be the subject of a supervisory examination by the agency.
