The SEC must have been stung by accusations that they're not doing enough to keep advisors in line. They're actually going to start checking form ADV statements for errors and lies.
It's odd to hear that Robert Khuzami, head of the SEC's enforcement division, is saying that his team is "reviewing registration documents" now.
He's been saying it for weeks.
The implication is that this is something new and revolutionary for the SEC. I applaud them for anything they can do to make their processes more efficient and use their resources in a smarter way.
But I thought they were already doing more than scan ADV forms and file them in the database.
Far from creating confidence, this is actually an ominous development. What else did the public, law makers, and advisors assume the SEC was doing all along -- but they're only bragging about putting in place now?
Otherwise, why were advisors filing all that paperwork all those years in the first place?