The Tennessee Securities Division, Department of Commerce and Insurance (Julie Mix McPeak, Comm’r) recently confirmed its launch of a comprehensive three-year cycle examination program covering all Tennessee-based broker-dealers and state-registered investment advisers.
The examinations will be “desk-examinations” requiring registrants to provide detailed documentation in response to some 18 categories of inquiry designed to ferret out non-compliant firms or “red flags” that may indicate regulatory violations. Unresolved issues or red flags will trigger further investigation by Division examiners. Assistant Commissioner Frank Borger-Gilligan indicated that the Division is eager to work with registrants to ensure that compliant firms are not unduly burdened, while finding and addressing non-compliant firms. Registrants should expect to hear from the Division in the coming months and be prepared to respond to the inquiry within two weeks of receipt. The initiative is unfolding from East to West across the state.
The Division also has beefed up its enforcement staff with new counsel and others.