State of Washington Classified Job Specification
FINANCIAL EXAMINER 3
Class Series Concept
See Financial Examiner 1
Positions plan, conduct, and lead complex financial examinations and/or analysis of regulated entities and/or positions independently conduct comprehensive analysis or portions of a complex analysis of a complex regulated entity.
Assignments are independently performed with limited direction and typically involve difficult and advanced legal, technical, and factual issues.
Takes action against illegal financial service providers; takes prompt corrective actions which result from not meeting net worth requirements, capital analysis and mandatory regulatory action, binding or net worth analysis; approves special applications or waivers of requirements; reviews financial institutions or service providers or issuers for compliance with regulatory privacy provisions; registers debenture companies and high-risk applicants in compliance with state and federal statutes; examines large, complex financial; 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;
As examiner in charge, independently conducts complex analysis of the 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; conducts risk-focused examinations and develops strategies for assessing and controlling risks; detects weaknesses in financial institution policies and practices; assesses management’s capacity to run a financial institution or issuer; recognizes and evaluates weaknesses in an institution’s or issuer’s business and strategic plans (its ability to manage long term strategic goals); recognizes weaknesses in internal controls of an institution; evaluates a financial institution’s overall asset quality and associated controls; 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 (NDIP); assesses the risk involved with merchant banking activities; interprets and applies applicable laws, rules, and standards; reviews for compliance with mortgage industry regulations including Home Owners Protection Act (HOEPA), Fair Credit Reporting Act (FRCA), and Real Estate Settlement Procedures Act; conducts off-site reviews, disciplinary reviews and background checks.
Conducts interviews and interrogations and documents findings in a comprehensive and accurate memorandum, covering relevant topics; 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; 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;
Prepares reports of examinations, reviews of applications, or investigations outlining deficiencies, concerns and recommends solutions or results of financial record reconstruction and analysis; meets with affected parties concerning legal and/or procedural problems; 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; may participate in Coordinated Examination and Review Programs as a lead examiner;
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 a forensic accounting review or analysis of complex financial transactions; develops examination software; analyzes computer systems for evidence of crime using computer forensics; conducts Information Systems and Technology exams;
Performs statistical sampling; uses specialized software including examination specific software, software for analysis of financial transactions and accounts, and software for investigation management, and software to produce visual aids for litigation.
Analyzes complex financial accounting data and reports; analyzes risks associated with off-balance sheet activities in financial institutions or issuers; evaluates the adequacy of an institution’s asset/liability management processes; reviews hedging activities in financial institutions or financial service providers or issuers; evaluates Eurodollar transactions.
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; interprets financial ratio trends; 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 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 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 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 complex 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 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, review of application and joint projects with prosecutors and law enforcement on 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, RBC requirements, etc.;
Follows established enforcement referral procedures for transfer of evidence to relevant enforcement personnel for illegal or noncompliant activities;
Reports to supervisor on analysis/examination status, financial condition and compliance of regulated entity and findings for recommended changes or corrections;
Prepares special analyses/examinations 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;
Trains, instructs, leads, mentors, and provides performance feedback to financial examiners and other regulatory personnel;
May perform information system control and reinsurance analysis/examinations;
Advises appropriate manager of financial condition and compliance of regulated entity;
Meets with staff, executives, boards of directors, attorneys, actuaries, and accountants to review findings and make recommendations for changes and corrections of certain practices where required;
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, ration analysis, reinsurance, investment, and holding company transactions; reserving techniques and analysis; computer software programs such as Work, Excel, Access, Teammate AX, etc.; applicable state and agency policies and procedures.Ability to: write and/or review clear and concise findings, summaries, and reports; recognize complex problems with regulated entities and assist in developing solutions; plan research assignments and/or work on complex research assignments involving “theory” and such “conceptual” areas as materiality and interrelationships of accounts; recognize in advance possible problem areas of assignments; deal tactfully, but firmly with company officials; work effectively with other regulators.
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.
ANDThree 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.
NOTE: Incumbents may be required to travel for extended periods.
Class Specification History
Salary adjustment adopted 6/30/2015, effective 7/1/2015.