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Report File
Date Issued
Submitting OIG
Securities and Exchange Commission OIG
Other Participating OIGs
Securities and Exchange Commission OIG
Agencies Reviewed/Investigated
Securities and Exchange Commission
Components
Division of Examinations
Report Description

Enhanced Planning, Performance Measurement and Evaluation, and Information Can Improve Oversight of Broker-Dealer Examinations report No. 583

Report Type
Audit
Agency Wide
Yes
Number of Recommendations
6
Questioned Costs
$0
Funds for Better Use
$0

Open Recommendations

This report has 4 open recommendations.
Recommendation Number Significant Recommendation Recommended Questioned Costs Recommended Funds for Better Use Additional Details
1 Yes $0 $0

We recommend that the Division of Examinations: (a) Develop Broker-Dealer and Exchange examination program goals and objectives that reflect core mission areas; (b) establish Broker-Dealer and Exchange examination program performance metrics that align with established program goals and objectives and are based on recognized leading practices (that is, are outcome-based, informative, clear, and linked to agency goals and mission); and (c) develop Broker-Dealer and Exchange examination program evaluation and monitoring activities that consider performance metric data and are based on recognized leading practices (that is, activities that help drive potential change by determining whether the program is working and why).

2 Yes $0 $0

"Conduct a comprehensive review of the following topics as part of ongoing efforts to improve the BrokerDealer and Exchange examination program, and establish appropriate corresponding corrective action(s):
a. Examination scoping practices holistically, to include the use of limited scope examinations (such
as thematic initiatives).
b. Alignment of examinations with annual priorities, industry activities, and risks identified in brokerdealer planning data.
c. Extent of asset verification performed and waivers authorized.
d. Broker-dealer examination coverage of the Financial Industry Regulatory Authority and how it
may be leveraged in program planning. "

3 Yes $0 $0

Require that exam plans or other planning memoranda contain more detailed information about the process used to select broker-dealer examination candidates and the reason(s) for selection to help support that risk-based strategies were used.

6 Yes $0 $0

Review and update, as appropriate, procedures and guidance relevant to asset verification and risk ratings to ensure recordkeeping in TRENDS is consistent across broker-dealer examination files, which may include incorporating reviews of this information across broker-dealer examinations.

Securities and Exchange Commission OIG

United States