In early 2018 both the SEC’s Office of Compliance Inspections and Examinations (“OCIE”) and FINRA announced their examination priorities for 2018.

As in previous years, both OCIE and FINRA share many examination priorities designed to protect retail investors (focusing on risks specific to senior investors) and managing market-wide risks. Although many of the identified priorities have been priorities in prior years, OCIE and FINRA have identified new foci worth noting. In 2017, OCIE announced that one of its priorities would include greater oversight of FINRA, which has taken on increasing responsibilities for conducting broker-dealer exams, and created a dedicated inspection team, FINRA and Securities Industry Oversight (“FISIO”). In 2018 OCIE will maintain its heightened oversight of FINRA and examine select operations, policies and procedures, and controls of the Municipal Securities Rulemaking Board (“MSRB”), a self-regulatory organization which has the responsibility of regulating broker-dealers and banks that buy, sell, and underwrite municipal securities, and municipal advisors. In 2018, FINRA has pledged to focus on certain operational risks that were highlighted by the events of 2017—with a particular focus on business continuity planning that will enable firms to weather disasters like Hurricanes Harvey and Maria. Further, given the expansion of the cryptocurrency market in 2017, both OCIE and FINRA have pledged to monitor cryptocurrencies and initial coin offerings in 2018. Of note, in 2017 the SEC National Exam Program completed 2,870 examinations-an 18% increase from 2016.