This video can be viewed at the below link.[1]

When the SEC talks about “exams,” what do we mean?

Is that like dental exams?

Final exams?

No, I don’t mean visiting the dentist or taking a test at school.

I’m talking about the Securities and Exchange Commission’s Division of Examinations, which makes up about a quarter of our dedicated staff.

When Congress passes a law or the Commission enacts a rule for market participants, you need somebody to check for compliance. History and a study of human nature tell us it won’t work otherwise.

Think for a moment of a restaurant. As diners, we trust that kitchens are up to code, but we’re more confident when there are health inspectors who can check for compliance behind the scenes. Even the potential of such inspections provides additional motivation for restaurants to comply with health standards throughout the year.

Our Division of Examinations checks on investment advisers, investment companies, broker-dealers, and other market participants. They examine big pieces of the market structure: like the stock exchanges themselves, clearinghouses, and other self-regulatory organizations such as the Financial Industry Regulatory Authority.

Our examiners give feedback to restaurants — er, I mean, registrants — based on those examinations. In addition, they glean broader insights from this sample of examinations, issuing risk alerts to registrants and investors alike. And sometimes, examinations lead to new Commission rules or referrals to our Division of Enforcement, which investigates potential misconduct.

Working out of 11 regional offices and our DC Headquarters, SEC staff conducts about 3,000 examinations each year.

Investors can benefit from knowing that our staff is looking behind the scenes, in the kitchens, much like those restaurant inspectors.

In a time of growing markets, evolving technologies, and new forms of risk, our Division of Examinations continues to protect investors and help ensure compliance with the federal securities laws and rules—and that helps protect you.

Sounds a heck of a lot better than a dental exam!