SEC stresses importance of compliance

In an open letter released Tuesday, the SEC warned chief executives of registered financial services firms to be vigilant when it comes to keeping their compliance programs in order. In the letter, Lori Richards, director of the U.S. Securities and Exchange Commission compliance inspections and examinations office, stressed the importance of protecting the interests of customers, clients and shareholders. Compliance is necessary to protect everyone, including the integrity of firms, she wrote. Firms need to pursue appropriate trading practices, disclosure obligations, and follow financial, valuation and risk controls, Ms. Richards wrote. “By fulfilling their obligations, regulated firms in the financial services industry can help to restore and bolster public confidence in the fairness and integrity of our markets and market participants,” she wrote.