JOB TITLE: SECURITIES COMPLIANCE EXAMINER 2

JOB CODE: 04820

SERIES NATURE OF WORK: The Securities Compliance Examiner job series describes work in the regulation of securities entities regulated by the Department of Banking and Securities.

DEFINITION: This is professional work in the examination, investigation, and/or audit of securities entities and securities for compliance with laws, regulations, and sound management and sales practices.

An employee in this job independently conducts examinations, investigations, and/or audits of broker-dealer firms and agents, investment advisor firms and representatives, and securities. Work involves independently preparing examination, investigation, or audit plans; conducting entrance conferences; interviewing company principals; inspecting books and records; determining the policies and operating procedures in effect; gathering, compiling, and analyzing documents and information; preparing written reports of findings; and presenting results including conclusions and recommendations. Work may involve contacting and interviewing witnesses and assisting legal staff with taking depositions and in the preparation of subpoenas or orders; coordinating with other examiners to conduct examinations, investigations, and audits and providing technical assistance; and providing on-the-job training and guidance to lower level examiners. Work is assigned by a higher level examiner or supervisor and is reviewed upon completion for technical accuracy, completeness, and conformance with instructions and guidelines.

   DISTINGUISHING CHARACTERISTICS:

• Work is differentiated from the next lower level by the responsibility for independently conducting examinations, investigations, or audits and preparing reports of findings.

EXAMPLES OF WORK: (NOTE: The examples of work are representative of the work, but every position classified to this job may not perform all examples of work listed. Conversely, this is not an all-inclusive list of work examples.):

• Conducts examinations, investigations, and audits of the regulated securities community and securities to ensure compliance with applicable laws and regulations and to ensure investor protection.

• Reviews investor complaint files for registrants to be examined by reviewing licensing and enforcement files associated with registrants and, if appropriate, contacts representatives of the Securities and Exchange Commission, Financial Industry Regulatory Authority, various financial exchanges and markets, or other enforcement personnel to determine specific examination areas to be emphasized.

• Conducts pre and post registration examinations of investment advisors registering, registered, or required to be registered in Pennsylvania by monitoring, analyzing, and processing applications and registration amendments to determine eligibility for registration and ongoing compliance with laws, rules, and regulations.

• Conducts financial investigations of investment advisors suspected of violating laws and regulations.

• Participates in complex and multistate examinations, investigations, and audits.

• Reviews customer complaint and correspondence files maintained by companies to detect suspected misleading statements, forecasts, or projections made to customers.

• Reviews company operating procedures related to the use of advertising and solicitation materials, supervision of agent sales personnel, and internal control policies and practices.

• Examines bank statements, cancelled checks, and other cash records to ensure timely and accurate reconciliations and postings; proper maintenance and security of account materials; and proper maintenance of cancelled checks, endorsements, and documentation.

• Determines if overall liabilities are properly reflected.

• Computes net capital, aggregate indebtedness, and reserve and custody requirements, and assesses the overall financial condition of firms.

• Prepares written reports of examinations, investigations, and audits in accordance with standards and charts; evaluates, in narrative form, a firm’s condition and operation; presents conclusions as to compliance with laws and regulations with supportive data; and makes recommendations for corrective action, disposition, further examination or investigation, or other action.

• Coordinates and directs, or participates in, the course and scope of interviews to elicit information and evidence from investors, issuers, lawyers, accountants, agents, and individuals relevant to examinations, investigations, and audits.

• Recommends cases for administrative or legal action, or referral to other agencies for disposition.

• Obtains, reviews, and analyzes evidence, financial records, prospectuses, disclosure and filing documents, and other investigative material for securities fraud or violations and prepares comprehensive case report including recommendations.

• Assists legal staff with preparing enforcement orders.

• Testifies at administrative hearings or legal proceedings.

• Travels to examination and training sites.

• Performs related work as required.

ENTRY LEVEL KNOWLEDGES, SKILLS, AND ABILITIES:

• Knowledge of financial data analysis techniques and principles.

• Knowledge of accounting principles.

• Knowledge of the securities industry.

• Knowledge of financial investigative techniques.

• Knowledge of the use and functionality of standard software application programs, such as word processing, spreadsheet, e-mail, and database.

• Ability to compute net capital and apply standard accounting financial tests and ratios to financial data.

• Ability to perform, analyze, and interpret mathematical calculations and expressions.

• Ability to analyze and interpret written information and numerical data.

• Ability to communicate effectively orally.

• Ability to communicate effectively in writing.

• Ability to establish and maintain effective working relationships.

MINIMUM EXPERIENCE AND TRAINING: (NOTE: Based on the Entry Level Knowledges, Skills, and Abilities):

• Two years as a Non-Depository and Securities Compliance Examiner 1;

or

• Two years of professional accounting, auditing, financial securities investigative, financial securities compliance, or financial securities operations work experience in a financial securities entity or in the financial securities operation of a financial institution and a bachelor’s degree including or supplemented by nine credits in accounting, finance, economics, or a closely related field;

or

• Two years of professional experience in examining, auditing, or the financial investigation of financial securities entities or products for conformance to financial securities laws, financial securities rules, and financial securities regulations and a bachelor’s degree including or supplemented by nine credits in accounting, finance, economics, or a closely related field;

or

• An equivalent combination of experience and training that includes nine college credits in accounting, finance, economics, or a closely related field. A master’s degree in business administration, law, economics, accounting, finance, or a related field can be substituted for one year of the specialized experience.