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.
