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News October 29, 2012 Issue

SEC Exam Heads Are a Relatively New Class

Itís a sweep!

Okay, so it isnít really a sweep in the classic sense Ė not even in the SEC sense Ė but change is in the air nonetheless.

The San Francisco Giants swept the Detroit Tigers, and significant change has quietly arrived at the SEC as well.

Recently, the SEC announced Andrew Calamariís permanent appointment as regional director of its New York Regional Office (NYRO). Calamari had been serving as NYROís acting director since his predecessor, George Canellos, decamped in June to take over as deputy director of the SECís Division of Enforcement.

Calamariís move from acting to permanent director caused us to notice that thereís been some activity in the past year or so regarding SEC appointments not only in NYRO, but in all of the regional offices Ė particularly in the position of head of the regional examination programs.

Of the SECís eleven regional offices and its home office in Washington, DC, five offices have installed new heads of the adviser and investment company examination programs within the past year. Some of the regional heads are responsible for examining broker-dealers and transfer agents as well.

When you consider that the four regional offices involved blanket the Northeast, the Southwest, and northern California, along with the appointment of a new national exam director it creates a significant impact on a concentration of SEC-registered advisers.

Ken Joseph in New York.

On July 3, NYRO got a new head of adviser and investment company examinations when the SEC tapped Ken Joseph to leave his assistant directorship in Enforcementís specialized Asset Management Unit. Long a "key contributor" to NYROís enforcement efforts, Calamari said he looked forward to working with Joseph "as he applies his considerable skills to our examination effort."

Marshall Gandy in Fort Worth.

In March, the SEC named Marshall Gandy to head the examinations program in its Fort Worth Regional Office. Gandyís prior experience includes being a presiding judge in a Dallas County criminal court, an assistant district attorney, an enforcement attorney on the staff, and a senior regional counsel at FINRA.

As associate regional director for examinations, Gandy oversees a staff of approximately 40 accountants, examiners, attorneys and support personnel in the examination of advisers, investment companies, broker-dealers and transfer agents across Texas, Oklahoma, and Arkansas.

Michael Garrity in Boston.

Less than a year ago, on December 19, 2011, the SEC named Michael Garrity to head the exam program in its Boston Regional Office. Garrity leads a staff of approximately 60 that examine advisers, investment companies, broker-dealers and transfer agents across six New England states.

Garrity began his SEC career as an examiner in 2001 and is an experienced attorney, former financial services reporter, and former state regulator. He has been an assistant regional director for exams since 2005.

Kristin Snyder in San Francisco.

On November 29, 2011, the SEC named Kristin Snyder to head examinations in its San Francisco Regional Office.

Describing her as "extraordinarily hardworking, efficient, and tenacious," OCIE director Carlo di Florio said that Snyderís extensive experience as an enforcement attorney is ideal for identifying practices that represent the greatest investor harm.

Snyder took over from Daryl Hagel, who retired from the agency.

Drew Bowden, heading the national effort from Washington, DC.

It was on October 21, 2011 that Drew Bowden was named to succeed Gene Gohlke, who at his retirement earlier in 2011 was the only national head of the adviser and investment company exam program that the SEC had ever known. Bowden has since been tapped for the deputy director slot in OCIE, vacated by Norm Champ when Champ accepted the directorship in the Division of Investment Management.

That means another appointment will soon be announced to lead the national adviser and investment company examination effort.