Briefing: Regulatory Investment in Trade Surveillance – What You Should Know

August 10, 2017 - 11:00 am to 11:30 am
Investment Adviser ACA Technology
Kenny Clowers, Farid Razzak

In 2014, the U.S. Securities and Exchange Commission (SEC) announced a sustained commitment to revolutionize its National Examination Program and Enforcement Division through the extensive use of technology to detect and combat wrongdoing, including insider trading and market manipulation. Over the past several months, we have observed the SEC staff’s commitment to technology in action through various public statements and the announcement of a number of enforcement actions (both settled and ongoing) against registered investment advisers.
On Thursday, August 10th ACA's Kenny Clowers and Farid Razzak, hosted a 30-minute briefing about the SEC’s National Examination Program and its efforts to incorporate data analytics and trade surveillance through its National Examiner Analytics Tool. They also gave an overview of how ACA conducts Mock Audits in conjunction with ACA Decryptex®, ACA's proprietary algorithmic-based data analytics software that provides trade surveillance tools.

  • SEC National Examination Program - the approach the SEC has taken when it comes to examinations within the IA\IC industries (Risk Based, Never Before Examined, TCRs, etc.)
  • The SEC's continued development of trade surveillance tools - how examiners collaborate with analytics resources from the QAU (Analytics Support, NEAT, Data Driven Analysis) and what it may mean for registrants.
  • ACA’s Mock Examinations with Decryptex, a trade analytics and surveillance tool - how ACA Compliance and ACA Decryptex are working together to offer Mock Audit services that incorporate data-driven analytics along with a comprehensive compliance review to help prepare registrants for circumstances similar to an examination.