Agency tells asset management companies what it’s gunning for this year.
Treasurers at asset management companies have had their hands full for the past few years trying to understand their new compliance requirements and conform their activities to Dodd Frank. In terms of what they may face when the examiner comes knocking, the Securities and Exchange Commission has announced its 2014 National Examination Program priorities – letting asset management treasury departments know what to gird for.
The NEP will have multiple levels, making compliance a bit tricky. But according to a recent analysis by the law firm Kilpatrick Townsend & Stockton, the main issues of concern to Treasury appear to revolve around enterprise risk management.
The law firm writes, “This initiative is designed to: (i) evaluate firms’ control environment and “tone at the top,” (ii) understand firms’ approach to conflict and risk management, and (iii) initiate a dialogue on key risks and regulatory requirements.”
Of course enterprise risk management is a responsibility that is shared by most executives. But treasury may find itself facing calls for significantly more information on balance sheet maintenance, counterparties and hedging, when the SEC comes knocking.