“The proper disclosure and calculation of fees, expenses and other charges investors pay is critically important,” the OCIE said. “It is also important for financial professionals to inform investors of any conflicts of interest that might provide incentives for the financial professionals to recommend certain types of products or services to investors, including any higher cost or riskier products.”
New and never-before-examined investment advisors are also being scrutinized by the OCIE. “Given the percentage of investment advisors that are either newly registered or that have not been examined in some time, we will continue to make risk-based assessments and select those investment advisors for examination that have elevated risk profiles,” the SEC said.