The head of the Securities and Exchange Commission's examination program will move over to the brokerage industry's regulator next month to establish a new division designed to identify emerging vulnerabilities for investors and markets.
Carlo di Florio, director of the SEC's Office of Compliance Inspections and Examinations, will become executive vice president for risk and strategy at the Financial Industry Regulatory Authority Inc. on June 24. He will head Finra's new Office of Risk, Emerging Regulatory Issues, Enterprise Risk Management and Strategy.
“Carlo's expertise as a securities regulator will help Finra focus its resources in the areas that pose the greatest threat to investors and markets,” Finra chief executive Rick Ketchum said in a statement.
Andrew Bowden, the OCIE's deputy director, will take over for Mr. Di Florio as head of that office. Mr. Bowden, 51, joined the SEC in November 2011 as OCIE associate director for the investment adviser and investment company examination program.
Mr. Di Florio, 46, was appointed OCIE director in January 2010. Over his tenure, he restructured the OCIE into the National Exam Program, which consists of 900 staff members in 12 offices nationwide who examine investment advisers, broker-dealers, clearing agencies, transfer agents and self-regulatory organizations.
He put an emphasis on conducting risk-based exams, increasing collaboration with other SEC divisions, recruiting industry experts as examiners and utilizing technology to improve the exam process, according to an agency statement. At industry conferences, he also stressed that regulated firms implement a “culture of compliance,” starting with executives.