The Securities and Exchange Commission's Office of Compliance Inspections and Examinations should allow private firms conduct compliance audits of firms, so that it can devote its limited resources to doing a better job of protecting investors, former SEC Chair Harvey Pitt said. Despite OCIE's creation of a National Exam Program and implementing initiatives such as presence exams, Pitt said the SEC had struggled to fulfill its obligations of examining investment advisers. "The hard facts remain. Even these thoughtful reforms are not nearly enough. The SEC has to find a way to cope with its new compliance obligations," said Pitt, who was speaking at the Investment Advisers Association's annual conference last week. He said OCIE's current approach of using targeted reviews gave the wrong impression that the SEC lacked the manpower to effectively regulate the securities industry. The best solution, Pitt said, was to allow private firms to examine investment advisers so that
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