Now that you’ve seen what ACA Insight has to offer, don’t be without it. Subscribe now!

The weekly news source for investment management legal and compliance professionals

Current subscribers - please log in to the website in the upper right-hand corner

News January 11, 2010 Issue

Carlo di Florio Takes the Helm in OCIE

SEC Chairman Mary Schapiro has done it again.

The SECís first official announcement of the new decade was the appointment of Carlo di Florio, OCIEís second director in fifteen years. In one action (of the speaks-louder-than-words variety), Schapiro affirmed OCIEís status as an intact operating unit within the agency, and made good Ė again Ė on her pledge to put senior outside experience on the staff.

di Florioís previous employer is PricewaterhouseCoopers (PwC), where former associate director of inspections and examinations in the SECís New York regional office, Tom Biolsi, recently returned. Like Biolsi, di Florio has extensive experience with regulatory compliance and risk management. While Biolsiís expertise focused primarily on adviser compliance and oversight, di Florio will oversee the SECís examination efforts for advisers, broker-dealers, mutual funds, credit rating agencies and self-regulatory organizations, among other entities.

Only time will tell how di Florio may tackle his new responsibilities. Of the several attorneys we spoke with, none knew di Florio or could offer insight into his brand of leadership. More than one observed that on paper however, he looked like a solid pick. One senior industry attorney wondered whether he will "bring a consultantís green-eyeshade mentality to the job" or sink his teeth into substantive compliance issues. di Florioís resume suggests the latter.

Reading the SECís press release, di Florio has played a leading role in strengthening corporate governance, risk management and regulatory compliance practices and in defining new industry standards, including the Committee of Sponsoring Organizations Enterprise Risk Management standard and the Open Compliance and Ethics Guidelines. His experience includes strengthening corporate governance and regulatory compliance programs, and leading corporate fraud, corruption, conflicts of interest and money laundering inquiries across capital markets, investment management, banking and other financial services sectors and regulatory regimes.

For his part, di Florio said heís excited to collaborate with the SECís "talented and dedicated professionals across the country," while recruiting colleagues "with valuable new skill sets, including trading strategies, risk management and quantitative analytics." (Not to get too specific.)

For her part, Schapiro put some pretty specific words with her actions. Investors are relying on the SEC to police financial professionals, she noted. "A strong inspections and examinations unit," she said, "is instrumental to the SECís investor protection efforts."

With di Florioís arrival, she said, OCIE is getting "the energy, insight, and experience necessary to ensure that we keep pace with the rapid changes in the industry and continue to build upon the reforms of the past year."