June 21, 2021

SEC’s Division of Examinations issues Risk Alert on digital assets

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The Security and Exchange Commission’s Division of Examinations published on Friday a blueprint for investment managers and institutions on how the division will inspect the handling of crypto assets, or “digital asset securities,” moving forward. 

The division (formerly the Office of Compliance Inspections and Examinations) is the second-largest wing of the SEC and is tasked with overseeing securities industry players to ensure regulatory compliance.

Targeted toward investment advisors, broker-dealers, exchanges and transfer agents, this Risk Alert provided a broad list of specific procedural, bookkeeping and advisory steps the division will be expecting from securities companies in future examinations.

“As more securities industry participants seek to engage in digital asset-related activities, this Risk Alert provides transparency about areas of focus for the Division’s future examinations,” the office wrote.

Investment advisors should be aware of risks associated with forks and airdrops, and the Division will be reviewing advisors’ “fulfillment of their fiduciary duty with respect to investment advice,” a comment presumably related to disclosing theTitle: SEC’s Division of Examinations issues Risk Alert on digital assets
Sourced From: cointelegraph.com/news/sec-s-division-of-examinations-issues-risk-alert-on-digital-assets
Published Date: Fri, 26 Feb 2021 21:11:50 +0000