The top U.S. securities regulator plans to examine how the advisory industry pays mutual fund distributors, as well as broader trends and risks involving alternative funds. U.S. Securities and Exchange Commission examiners will kick off the first of two "sweeps" next week, the SEC's Office of Compliance Inspections and Examinations Deputy Director, Andrew Bowden, said on Friday at an Investment Adviser Association conference in Arlington, Virginia. In a "sweep exam" the SEC requests information from multiple firms to study industry-wide practices, often based on broad concerns identified by SEC staff. The SEC does not typically specify whether it is conducting a sweep exam as opposed to a routine or a for-cause exam. A company official may be able to identify a sweep by conferring with counsel or compliance personnel at other registrants. The first sweep will examine the different payments made to mutual fund distributors, including revenue-sharing, fees paid to industry conference
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