1 See Memorandum to Compliance Committee No. 17-95 and SEC Rules Committee No. 49-95, dated March 30, 1995.
May 30, 1995
TO: COMPLIANCE COMMITTEE No. 24-95
SEC RULES COMMITTEE No. 69-95
RE: INSTITUTE SUBMITS RECOMMENDATIONS TO SEC FOR IMPROVING FUND
INSPECTIONS
______________________________________________________________________________
The Institute recently submitted the attached letter to Lori Richards, Director of the SECGs new
Office of Compliance Inspections and Examinations (OCIE), offering suggestions for improving the
operation and efficiency of mutual fund inspections. The letter summarizes the suggestions that were
set forth in a memorandum previously circulated to you1 and additional recommendations provided by
members.
In addition to offering a number of specific suggestions for improving the inspections process,
the letter notes that many of the InstituteGs members, when asked for their views on improving
inspections, expressed particular interest in the relationship between the OCIE and the Division of
Investment Management. Specifically, the letter explains that members expressed concern about, among
other things, “the need for clarity in the respective functions of the two offices and for effective
coordination between them so as to avoid any conflict.” In this regard, the letter states that we were
pleased that Chairman Levitt, in his recent speech at the InstituteGs General Membership Meeting,
confirmed our understanding that the Division of Investment Management would continue to be
responsible for the development and interpretation of regulatory and policy matters affecting the mutual
fund industry, and that the OCIE would be responsible for conducting inspections and examinations
that reflect such policy.
Amy B.R. Lancellotta
Associate Counsel
Attachment