The Securities and Exchange Commission launched a special team within its exam office to deal with market events and emerging risks, the agency said Tuesday.
The event and emerging risks examination team, or EERT, will work within the office of compliance inspections and examinations and work with financial firms on emerging threats and current market events. The new team is also designed to mobilize when SEC regional offices are dealing with critical matters.
OCIE is responsible for conducting examinations of SEC-registered investment advisers, investment companies, broker-dealers, self-regulatory organizations and transfer agents, among others, the SEC said. OCIE uses a risk-based approach to most effectively allocate its resources to fulfill its mission of promoting compliance with U.S. securities laws, preventing fraud, monitoring risk, and informing policy. Working collaboratively with the OCIE exam staff in the regional offices, the new team will focus on OCIE exam priorities and help respond to significant market events that could have a systemic impact or that place investor assets at risk, such as exchange outages, liquidity events and cybersecurity or operational resiliency concerns, the SEC said.
"As recent events have demonstrated once again, market and operational risks can emerge suddenly," SEC Chairman Jay Clayton said in a statement. "We should be working to increase our ability to react, including bringing our various resources to bear to these situations."