The Securities and Exchange Commission (SEC) has released its annual report identifying key areas the Division of Examinations will focus on for the coming fiscal year.
The division’s mission is to promote compliance, prevent fraud, identify and monitor risk, and inform commission policy.
The division’s more than 34,000 registrants include broker-dealers, clearing agencies, funding portals, investment advisers, investment companies, municipal advisors, security-based swap entities, self-regulatory organizations, transfer agents, and others.
The 2027 areas of focus include oversight of self-regulatory organizations and other critical market participants; operational resiliency, cybersecurity, and protection of customer information; emerging technologies that may affect market operations, compliance, fraud prevention, and investor protection; and risks associated with evolving market infrastructure, including Treasury clearing reforms, tokenization, and related developments.
Other areas include investment advisers’ fiduciary obligations, conflict of interest, investment recommendations, and compliance programs; retail investor protection, particularly regarding complex, higher-risk, and illiquid products; private funds, private credit, and other complex investment strategies; and broker-dealer financial responsibility, trading practices, supervision, and anti-money laundering compliance.
The priorities the division believes present heightened risks to investors or market integrity. They will help guide the division’s risk-based program during the fiscal year. Priorities were developed in coordination with other SEC divisions and offices.