Key Takeaways
- The SEC’s Division of Examinations (EXAMS) published its report on 2024 Examination Priorities on October 16, 2023.1
- The 2024 Examination Priorities continue to reflect an examination program that is vigorous and broad in its focus.
- Many of the significant focus areas from the 2023 Examination Priorities remain key focus areas in the 2024 Examination Priorities including: compliance with recently implemented regulations; review of advisers to private funds; focus on registered fund fees and expenses; and standards of conduct for registered investment advisers and broker-dealers.
- A notable change from the prior year is the removal of environmental, social and governance (ESG) investing from the list of focus areas, though this may not signal a significant change in approach.2
- For fiscal year 2024, EXAMS staff expects to continue to increase in-person fieldwork.
Footnotes
- 2024 Examination Priorities, SEC Division of Examinations (Oct. 16, 2023). All statements in this Dechert OnPoint as to the intent or plans of EXAMS are based on the text of the 2024 Examination Priorities. At times, this Dechert OnPoint tracks the 2024 Examination Priorities without the use of quotation marks.
- ESG investing was removed from the 2024 Examination Priorities. However, we believe that ESG investing will remain a priority for the SEC and EXAMS staff as the list of focus areas in the Examination Priorities report is not all inclusive. Furthermore, with recently proposed ESG rules for advisers, the continued focus on ESG disclosures and the finalized “Names Rule”, which has ESG implications, we believe that ESG investing remains a priority for the SEC and note that clients should remain vigilant.
