Experts Warn Firms About SEC Exam Priorities

Derek Steingarten spoke to Financial Advisor about the Securities and Exchange Commission announcing its examination priorities for 2023.

Derek said he is showing his clients how to document their processes for dually registered reps to make sure they consider reasonably available investment alternatives. The processes should take into account fees and expenses, risk management and performance history, as well as what's in the best interest of the client.

"One thing I'd add, is that when a rep recommends funds or other investments, the firm really needs to focus on whether reps are offering proprietary or third-party products [and] disclose and manage inherent conflicts of interest in the comparison and assessment," Derek said.

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