Key Takeaways from the SEC’s 2025 Exam Priorities

The Securities and Exchange Commission (SEC) has unveiled its examination priorities for 2025, focusing on key areas such as investment advisers, broker-dealers, cybersecurity, and crypto assets. This announcement, detailed by Eric Mikkelson and Carissa Occhipinto from Stinson LLP, provides a roadmap for registered investment advisers, investment companies, and broker-dealers to prepare for potential examinations.

Investment Advisers

The SEC’s Division of Examinations continues to emphasize the importance of fiduciary duties. Investment advisers must adhere to fiduciary standards, ensuring they act in the best interests of their clients. The Division will scrutinize compliance programs, particularly for advisers integrating artificial intelligence into their operations.

Broker-Dealers

Broker-dealers are under the spotlight with the continued enforcement of Regulation Best Interest. The Division will assess whether broker-dealers make recommendations that are in the best interests of their clients, with a keen eye on complex and high-risk products. Compliance with Form CRS, which provides crucial information about broker-dealers to retail investors, remains a top priority.

Cybersecurity and Crypto Assets

Cybersecurity measures are critical as the Division seeks to prevent service interruptions and protect investor information. The evolving landscape of crypto assets also demands attention, with examinations focusing on whether registrants adhere to standards of conduct and maintain robust compliance practices.

Emerging Risks

The Division highlights potential risks in financial technologies, particularly the use of AI and digital engagement practices. Firms must ensure their representations about AI capabilities are accurate and that they have adequate controls in place.
For more detailed insights, you can view the full original article on Stinson LLP’s website.
As the SEC navigates these priorities amidst a changing presidential administration, registrants are advised to conduct thorough reviews and consult with counsel to ensure compliance and readiness for the year ahead.

More Articles

Getting licensed or staying ahead in your career can be a journey—but it doesn’t have to be overwhelming. Grab your favorite coffee or tea, take a moment to relax, and browse through our articles. Whether you’re just starting out or renewing your expertise, we’ve got tips, insights, and advice to keep you moving forward. Here’s to your success—one sip and one step at a time!

Palm Beach: A Real Estate Renaissance

In the sun-drenched locale of Palm Beach, South Florida, a compelling narrative is unfolding in the world of real estate. The "Palm Beach State of the Market" event, hosted by Bisnow, offers a panoramic view of the current dynamics shaping the region's real estate landscape.

By |October 15, 2024|Categories: Article, Events, Real Estate|Tags: , |0 Comments

Real Estate’s Resilience Amidst Economic Turbulence

In a riveting discussion at the Fortune Future of Finance conference, real estate experts explored the durability of the housing market despite numerous economic pressures, likening it to "defying gravity."

Unraveling the Affordable Housing Crisis Through Zoning Reforms

The affordable housing crisis in the United States is a complex issue, and no single solution can address it entirely. However, many cities are increasingly looking to zoning reform as a pivotal strategy to boost housing supply.

By |October 15, 2024|Categories: Affordable Housing, Article, Zoning Reform|Tags: , |0 Comments

Florida Struggling to Regain Footing After Consecutive Hurricanes

The human toll is staggering: approximately 250 lives lost, countless homes destroyed, and millions left without power.

By |October 14, 2024|Categories: Article, Economics, Environment|Tags: , |0 Comments

The Housing Dilemma in Steamboat Springs

Steamboat's identity as a small-town Western haven is at risk. The town, once known for its affordability compared to places like Vail, is now facing a real estate crisis.

By |October 14, 2024|Categories: Article, Community Development, Real Estate|Tags: , |0 Comments

Hitting Home: Housing Affordability Crisis in the U.S.

The American housing market is grappling with a crisis of affordability that is reshaping the landscape of homeownership and renting. With median house prices now six times the median income—up from four to five times two decades ago—the dream of homeownership is slipping away for many.