🔍 What's Happening
The SEC's Division of Examinations has just unveiled its 2026 examination priorities. This annual release is designed to keep registrants and investors in the loop about the key topics that will be under the microscope in the new fiscal year. It's all about encouraging firms to zero in on areas that might pose higher risks.
“Examinations are an important component to accomplishing the agency’s mission, but they should not be a 'gotcha' exercise,” said SEC Chairman Paul S. Atkins. The goal is to foster a transparent and constructive dialogue between SEC examiners and firms.
🔑 Key Focus Areas
The Division's eagle eyes will be on SEC-registered investment advisers, investment companies, broker-dealers, clearing agencies, and self-regulatory organizations. The priorities align with the Division's four pillars: promote and improve compliance, prevent fraud, monitor risk, and inform policy.
Expect a deep dive into core areas like fiduciary duty, standards of conduct, and the custody rule. Plus, get ready to comply with new rules like the 2024 amendments to Regulation S-P.
🌟 A Transparent Approach
Keith Cassidy, Acting Director of the Division of Examinations, emphasized the importance of transparency and practicality in this complex financial landscape. “Fiscal year 2026 marks an important time for the Division to build on our strengths and advance our mission with renewed focus,” he said. The goal is to protect the investing public while supporting fair and orderly capital markets.
🚀 Empowering the Newbies
The Division will continue to prioritize examinations of newly registered advisers and investment companies. The aim is to empower these newcomers to build robust compliance programs. The 2026 priorities cover a broad range of potential risks, urging firms to review and strengthen their compliance efforts.
