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News February 27, 2012 Issue

SEC 2013 Budget Proposal Calls for 222 New "Positions" in OCIE

Last year Ė which translates to the current fiscal year Ė the budget appropriated for the SEC was $1.321 billion. This year, President Barack Obamaís budget proposal for the SEC in fiscal year 2013 is $1.566 billion. The additional $245 million requested would support, among other things, the addition of 626 positions on the staff, 222 of them dedicated to inspections and examinations in OCIE.

The Investment Adviser Association (IAA) applauded the move. "IAA has long supported giving the SEC sufficient resources to provide effective oversight of the advisory profession. We are pleased that this budget will provide more examiners for OCIE," said IAA executive director David Tittsworth.

"Positions," however, do not translate directly into headcount.

The budget proposal notes that the 222 positions allocated for the expansion of OCIEís inspection and examination capabilities translates into 65 full-time staff.

"In 2013, OCIE plans to hire additional examiners to focus on investment advisers and investment companies as part of a multiyear effort to increase coverage of the advisory industry, allowing OCIE to more effectively assess the risk of, monitor, and examine market participants to focus on the areas of greatest need of attention," said the budget proposal.

OCIE plans to increase the number of examiners focused on private fund advisers, in anticipation of the arrival of approximately 750 new registrants in that space.

If the funding requested is appropriated, that would see OCIEís current staff of 968 employees rise to 1,190. It isnít shooting the lights out toward significantly increasing OCIEís capacity to conduct adviser examinations in the near future, but at an increase in staffing of 6.7 percent, itís a good start.