The US Securities and Exchange Commission (SEC) has vowed to start monitoring crypto brokers and advisors to ensure they adhere to their own standards while issuing investment recommendations, referrals, and advice to their clients. The regulator revealed this while outlining its plans for 2023 in the press statement on its website.
Acting Director of Examinations Richard Best explained the agency’s determination to ensure investment advisors comply with the rules. This, according to the manager, will protect investors.
"Our examination program continues moving forward and remains committed to furthering investor protection through high-quality examinations and staying abreast of the latest industry trends and emerging risks to investors and the markets," Best said.
The Saudi Electricity Company believes that this program will allow the agency to verify brokers and advisors’ compliance, disclosure, and risk management practices.
Brokers, dealers and Independent Investment Advisers (RIAs) will be screened under the Examinations section regarding new financial technologies and practices used to meet compliance and marketing needs.
Each year, the US regulator usually highlights its priorities through its quizzes section. Remember that in early 2022, too published A similar statement, confirming its plans for that year.
In the statement, the agency promised to focus on several categories, including private funds, retail investor protection, information security and operational resilience, emerging technologies, and crypto assets.
"The Division’s 2022 examination priorities identify key risk areas that we expect registrants to address, manage, and mitigate with vigilance," SEC Chair Gary Gensler noted.
Its 2023 decision on brokers and advisors comes when the agency is investigating FTX co-founder Sam Bankman-Fried and his accomplices for alleged wire fraud and money laundering.
The ongoing trial of FTX executives by the Securities and Exchange Commission
According to the Securities and Exchange Commission, FTX executives took advantage of the exchange to defrauding investors from their origins. Last December, the agency accused former FTX CEO Sam Bankman-Fried of defrauding equity investors who invested more than $1.8 billion in the company.
Other executives identified in the case include Gary Wang and Caroline Ellison. Although both Wang and Ellison have begged Guilty of the allegations, Bankman Fried has yet to do the same. However, the co-founder was granted bail of $250 million after being extradited to the country from the Bahamas.
