SEC Division of Examinations Releases 2025 Priorities
November 04, 2024
Key Takeaways
- The SEC’s Division of Examinations (EXAMS) published its report on 2025 Examination Priorities on October 21, 2024.
- Areas such as artificial intelligence (AI), cybersecurity and crypto assets are top of mind for EXAMS, as are areas that have been the targets of recent SEC rulemaking initiatives, such as private fund fees and expenses and the outsourcing of investment-related functions.
- The 2025 Examination Priorities also include perennial issues such as fiduciary duties, standards of conduct, the effectiveness of advisers’ compliance programs in core areas such as marketing, valuation, trading and custody, as well as compliance with recently implemented regulations.
- Other key focus areas in 2025 include: private fund advisers, which remain a significant portion of the SEC-registered investment adviser population, newly registered advisers and advisers that have not been recently examined and broker-dealer practices related to Regulation Best Interest.
While the 2025 Examination Priorities reflect the practices, products and services that EXAMS deemed to present heightened risks to investors or the integrity of the U.S. capital markets, they are by their own terms not a comprehensive compilation of the issues that may be addressed in examinations. EXAMS will cover other areas and conduct examinations focused on, and devote resources to, new or emerging risks, products and services, market events and investor concerns.
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