New Office of Compliance Inspections and Examinations Director Carlo di Florio recently took some time out of his busy schedule to answer a few questions for Chapter 293 Works:

Chapter 293 Works: Now that you have been at the SEC for a few months, can you share with us some of your initial thoughts about government service, and in particular about leading the Office of Compliance Inspections and Examinations?

di Florio: Leading OCIE is a tremendous honor and privilege given our important mission, our great team and this historical moment of regulatory reform. I explored government service earlier in my career, but a family move made it impractical at the time. So, to finally have the opportunity to go into government service at this time is like coming full circle. One of the things I have enjoyed the most has been my visits to the regions. It has been so wonderful meeting the talented people that comprise our national exam team. Our candid dialogues have taught me a great deal about what is working well, what could be improved and what matters most to our people. I’ve gotten a sense of the team and the people, and how strong the front line is. It’s inspiring.

Chapter 293 Works: Can you comment on the self-assessment process that you have initiated in OCIE, and when you expect it to be completed?

di Florio: We are undertaking a big transformation to improve our program and take it to the next level. It’s a very exciting time and the suggestions of our staff have been at the heart of our change. No one knows that imperfections in a program better than the front line that has to work with the program every day. We are looking at six areas – Exam Process, Risk Assessment, Technology, Structure, People and Culture, Recruiting and Training! So we are going to have to think strategically and move forward with speed but also with care, to anticipate the roadblocks and keep all the moving pieces together! The opportunity to take the examination process to the next level is a big undertaking. Our objective is to bring more and more people into the planning and implementation until everyone has a part to play and we can all see the goal and contribute to making it happen: to deliver a smarter, faster, stronger risk-based examination process, as a national team.

Chapter 293 Works: What are the greatest challenges currently facing OCIE front line employees that you have identified?

di Florio: The great thing about our team is that no matter what obstacles they face, they overcome them and find a way to get the job done. They have that resilience. But they shouldn’t have to spend their energy getting around obstacles. What I’ve heard directly from staff on the front line is:

• Give us better training
• Give us a better exam process with more risk-focused plans and streamlined reports
• Give us better technology
• Break down the silos

The Self Assessment team is VERY aware of these challenges and focused on removing as many obstacles and challenges as we can. It’s our job, as a team, to pull together to make that happen.

Chapter 293 Works: What should OCIE be striving for in the next year or two?

di Florio: We should be focused on delivering on our mission: to take a risk-based and strategic approach to examinations, and to use our terrific, multi-disciplinary team in the most effective ways possible to protect investors and our markets.

I would also like us to work with a common set of operating values. We work as a team within a culture of open communication and trust. We have each other’s backs. We deliver quality. We are accountable for our work. We take ownership for the urgency of our mission and for leading change. We hold ourselves and each other to the highest standards. And we continuously improve.

Let’s acknowledge that we are trying for a big transformation. It’s not going to be easy. We all need to learn to be change agents. Everyone can step up to this challenge.

Chapter 293 Works: What are your thoughts about the value of a good labor-management relationship in OCIE?

di Florio: It’s invaluable and I feel great about our relationship. It’s a partnership between labor and management and it should be about doing the right thing by our people. We have been working on a plan to address the concerns that staff raised in the last Human Capital Survey and that should enable us to make a great impact. We are also working on additional ways for staff to share their ideas on a continual basis. These area examples of how we are teaming up as a labor-management partnership to go beyond words, to actions.

The staff are critical to everything we do, and we are accountable as a partnership for providing them with the support, coaching, and development that makes this a great place to work.