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Securities and Exchange Commission Office of Compliance Inspections and Examinations Enhancements Yielded Through New Risk-Based Methodology

* Focused routine examination on high-risk firms and increased examination frequency from once every five years to once every two or three years (prior to 1998, examinations were as infrequent as once every 12 years to 24 years

* Increased use of technology and data

* Implemented risk-mapping to identify new or merging areas of compliance risk and worked closely with SEC's new Office of Risk Assessment to help identify and coordinate areas of risk across agency

* Implemented a new program to rapidly investigate emerging compliance problems through the use of sweep examinations

* Increased use of interviews during examinations, as part of the assessment of a firm's control or risk environment

* Worked with an SEC task force to study the possible use of data as part of a surveillance program for funds and advisers

* Initiated a new dedicated monitoring team for certain large advisers

* Initiated a new Chief Compliance Officer Outreach program to help new mutual fund and investment adviser CCOs identify and resolve compliance problems at their firms

Source: Securities and Exchange Commisision