State of Washington Classified Job Specification
FINANCIAL EXAMINER 4
Class Series Concept
Positions plan, conduct, and lead the most complex examinations and/or financial analysis of regulated entities and/or independently conduct advanced comprehensive analysis or portions of an analysis of a regulated entity of any size or complexity.
Assignments that are the “most complex” include leading examinations/analysis of “nationally significant” regulated entities, as defined by the National Association of Insurance Commissioners (NAIC). Positions at the fourth level perform duties requiring expert knowledge of regulated entities with significant problems or troubles. Duties may involve financial and business activities that cross industry or regulatory frameworks, are politically sensitive, or involve issues not adequately covered by existing written procedures or manuals and require the development of new techniques and/or work methods.
Conducts analysis of most complex financial institutions, service providers or issuers for safety and soundness, financial stability and/or compliance with applicable state and federal laws and industry standards; interprets and applies applicable laws, rules, and standards; conducts risk-focused examinations and develops strategies for assessing and controlling risks; detects weaknesses in policies and practices, business or strategic plans or internal controls; reviews for compliance with regulatory privacy provisions; analyzes sound lending criteria (for commercial, consumer, and real estate loans) and assesses adequacy of loan documentation; assesses compliance with marketing, disclosure and accounting issues related to the sale of non-deposit investment products; assesses the risk involved with merchant banking activities; reviews for compliance with mortgage industry regulations including Home Owners Protection Act; Fair Credit Reporting Act, and Real Estate Settlement Procedures Act; conducts off-site reviews, disciplinary reviews and background checks; reviews for interdivisional departmental issues; examines large, complex units for safety and soundness; examines debenture companies and high-risk applicants for compliance with state and federal statutes, and escrow companies involved in real estate financing and contract collections for safety and soundness and compliance; examines for compliance with sub-prime lending or payday lending guidelines, participation in SBA 7(a) Loan Guaranty Program, asset securitization and associated risks; assesses compliance with marketing, disclosure and accounting merchant banking activities;
Prepares reports of examinations reviews of application, or investigations outlining deficiencies, concerns and recommends solutions; discusses legal and/or procedural issues with affected parties; prepares accurate reports setting forth the results of financial record reconstruction and analysis; conducts effective interviews and interrogations and document that interview or interrogation covering relevant topics and dealing with opposing counsel; presents testimony (including expert testimony), documentary evidence and demonstrative evidence in a hearing or trial; initiates, negotiates and drafts regulatory actions (Memoranda of Understanding, Supervisory Agreements, Directives, Cease and Desist Orders and Enforcement Actions) and changes to applications; works with other regulators in enforcement, examination, coordinated review of applications and joint projects with prosecutors and law enforcement on enforcement matters; conducts outreach or technical assistance sessions with registrants or potential registrants; provides technical assistance to regulated entities; participates in Coordinated Examination and Review Programs as a lead examiner; may act as Program Administrator for national or regional Coordinated Review Programs or, participate on national committees for planning, policy development and teaching or training purposes.
Performs statistical sampling; investigates for predatory lending practices, such as loan flipping, engaging in fraud or deception to conceal the loan obligation, etc.; analyzes complex fraudulent transactions or practices for violations (including market manipulation and excessive markups); conducts forensic accounting review or analysis of complex financial transactions; uses specialized software; develops examination software; analyzes computer systems for evidence of crime using computer forensics; conducts Information Systems and Technology exams; reviews electronic banking and other transactional web sites;
Assesses an institution’s or issuer’s quantity and trend of earnings and other factors that may affect the sustainability of earnings or ability to pay obligations; analyzes complex financial accounting data and reports; interprets financial ratio trends; examines and solves difficult financial problems; analyzes risks associated with off-balance sheet activities in financial institutions or issuers; assesses the current level and prospective sources of liquidity compared to funding needs and risk profile of the financial institution or issuer; evaluates the adequacy of an institution’s capital compared to the risk structure or issuer’s finance plan; reconstructs and analyzes various types of financial records; analyzes an institution or account’s investment portfolio and investment strategies and assesses whether the portfolio meets appropriate objectives including safety and adequate control of risk; appraises investments and collateral; evaluates the adequacy of an institution’s asset/liability management processes by analyzing the institution’s exposure to changing interest rate environments; reviews hedging activities in financial institutions or financial service providers or issuers; evaluates Eurodollar transactions; evaluates the impact of a S Corp corporate structure on a financial institutions or financial services providers or issuers;
Works with Financial Examiners, Certified Public Accountants, Certified financial Examiners, Accredited Financial Examiners, and others;
Analyzes/examines most complex regulated entities and determines compliance with applicable laws, regulations, and standards including, but not limited to, financial compliance, investment compliance, audit failure, antitrust, security sale compliance, or “Ponzi” schemes on a state, national, and international level. Reads and reviews updated applicable laws, regulations, and standards using both text and computer-based sources to ensure analyses and examinations are appropriately conducted. Interprets and applies applicable laws, rules, and standards;
Assesses analysis/examination risk, materiality, and other matters; assesses inherent risk that the susceptibility of an assertion (there are five – existence or occurrence, completeness, valuation or allocation, rights and obligations, and presentation and disclosures) contains a material misstatement that can be caused by three conditions – missing entry, erroneous entry, and the presence of entry that does not belong in the account; assesses control risk that a material misstatement will not be prevented or detected on a timely basis by the regulated entity’s internal control; assesses risk management i.e., the ability of the regulated entity to identify and manage risk; assesses capital requirements i.e., the regulated entity’s ability to determine its capital requirements to cover potential claims; assesses materiality; assesses and reviews prior analysis/examination report, file, stated management and accounting personnel qualifications, bios, priority rating, and current filing; assesses acceptable low, moderate, or high detection risk; incorporates risk assessment into the analysis/examination procedures;
Develops an overall analysis/examination plan and designs specific procedures and tests to be accomplished in order to achieve regulatory standards analysis/examination objectives and deadlines; determines the nature, scope, timing, and extent of financial analysis/examination procedures;
Determines, obtains/downloads, prepares and maintains necessary filings, documents, worksheets, and information from various database sources that are required to conduct the financial analysis/examination; creates, places, and maintains evidence documents about regulated entity into the files;
Analyzes/examines most complex regulated entities’ filings, accounts, and documents containing financial information, correspondences, and articles of incorporation by laws, board minutes, and committee minutes, to assess and determine management effectiveness and regulated entity’s financial condition and compliance;
Logs, compiles, and extracts data to create documents required to complete financial analysis/examinations;
Reads, analyzes, and examines filings, documents, and other information to assess most complex regulated entity’s financial condition, statement assertions, and compliance with laws, regulations, and standards; prepares and completes checklists and/or additional analysis/-examination procedures/programs; evaluates analysis/examination procedures, programs, and findings;
Writes analysis/examination reports for assigned regulated entities, including updating risk assessment, profile summary, and supervisory plan; documents information to support final determination and any resulting recommended action, including enforcement;
Meets with affected parties concerning legal and/or procedural problems;
Conducts interviews and interrogations; documents in memorandum;
Works with other regulators in enforcement, examination, analysis, coordinated review of application and joint projects with prosecutors and law enforcement matters;
Identifies material adverse findings; follows established procedures to communicate the finding including for most regulated entities not meeting capital, surplus, net worth, or RBC requirements etc.;
Follows established enforcement referral procedures for the transfer of evidence to relevant enforcement personnel for illegal or noncompliant activity;
Reports to supervisor analysis/examination status, financial condition and compliance, and findings for recommended changes or corrections to regulated entity practices;
Prepares special analyses/examination of regulated entities admitted to or applying for admission to do business in Washington State; registers regulated entities in compliance with applicable laws, regulations, and standards;
May supervise examiners;
Trains, instructs, mentors and provides performance feedback to financial examiners and other regulatory personnel;
Advises company officials and commissioner or director, through appropriate manager, of financial condition and compliance of regulated entity;
Assumes charge of examination of analysis functions during absence of section manager;
Performs advanced specialized analysis of any size regulated entity and complexity of one of following: financial analysis/examination work papers; information system controls; reinsurance; or investments;
Advises management on specialized examination status and writes detailed reports; provides technical support and leadership to multiple examinations by answering technical, policy, and compliance questions in these areas;
Performs other work as required.
Knowledge and Abilities
Knowledge of: applicable RCWs, WACs, US GAAP, US GAAS, SAP, regulatory standards analysis procedures, and regulatory standards examination procedures; regulatory entity operations, transactions, and reporting practices; financial statement examination/analysis; ratio analysis; reinsurance transactions; investment transactions; holding company transactions; reserving techniques and analysis; computer software such as Word, Excel, Access, Outlook, Teammate, AX, etc.; applicable state and agency policies and procedures; principles and practices of effective supervision.
Ability to: effectively interact with individuals as well as internal and external organizations; provide guidance and direction to others; write and/or review clear and concise findings, summaries, and reports; recognize the most complex of regulatory entity problems and assist in developing solutions; plan research assignments and/or work on complex research assignments involving “theory” and such “conceptual” areas such as materiality and interrelationships of accounts; recognize, in advance, possible problem areas of assignments.
There may be instances where individual positions must have additional licenses or certification. It is the employer’s responsibility to ensure the appropriate licenses/certifications are obtained for each position.
A Bachelor’s degree with major study in finance, business administration, economics, accounting, or related field including at least 12 semester or 20 quarter hours of accounting, finance, or economics. Some examiner positions may require 36 quarter hours or 24 semester hours of accounting.
Five years of professional experience in one of the following:
- accounting or auditing;
- analyzing or examining regulated entities;
- working for a regulated entity in advanced positions in the areas of lending, operations, analysis of loan or securities portfolios, auditing, reinsurance, investments, information system reviews, or any combination of these.
For positions working with financial institutions or financial services companies, it is desirable that a candidate have obtained the following certifications and/or education. Graduation from a specialized banking school gained through an accredited college or university (i.e.,
- Certified examiner from a national regulatory association, or
· "Certified Financial Examiner" from the Society of Financial Examiners, or
· “Certified Fraud Examiner” from the Association of Certified Fraud Examiners recognized by the court system as “expert witness” or
· “Certified Public Accountant” or
· “Chartered Financial Analyst” from the Association for Investment Management and Research or
· “Certified Anti-Money Laundering Specialist” or
· Other credentials that would allow the examiner to perform advanced analysis or examination, or to testify as an expert witness in a hearing or trial on matters relating to the department’s application, examination, or enforcement activities.
Unless otherwise stated, qualifying experience will substitute, year for year, for education, providing the required 12 semester or 20 quarter hours of accounting, finance or economics course work has been completed.
For positions working with entities regulated pursuant to subject to the Washington Insurance Code, it is desirable that candidates have obtained the following designation: Certified Financial Examiner (CFE) in an insurance discipline as granted by the Society of Financial Examiners or a Certified Public Accountant (CPA) certificate granted by Washington State, or any state in the U.S. having reciprocity with Washington State. It is also desirable for positions to have two years supervisory, lead, or advanced position experience. After July 1, 2007, new incumbents without a CFE or CPA designation or two years of supervisory, lead, or advanced position experience will be subject to a specific training plan and must obtain a CFE or CPA designation as specified in the training plan.
NOTE: Incumbents may be required to travel for extended periods.
Class Specification History
Salary adjustment adopted 6/30/2015, effective 7/1/2015.