As the Division of Examinations of the Securities and Exchange Commission (SEC) unveiled its 2025 examination priorities, a broad spectrum of issues for registered investment advisers, investment companies, and broker-dealers comes into focus. Published on October 21, 2024, this document underscores significant themes expected to resonate throughout the upcoming year.


The priorities, while reflecting potential shifts due to the changing presidential administration, maintain steadfast core areas, suggesting continuity in enforcement actions. A comprehensive review highlights the Division’s focus on private fund advisers, cybersecurity, and the utilization of artificial intelligence, emphasizing long-standing commitments alongside new regulatory amendments.


Investment Advisers

For investment advisers, the SEC will enhance oversight on those who have never undergone an examination or have been recently registered. Key review components will include fiduciary standards, compliance programs, and private fund advisers, particularly in volatile markets like commercial real estate and crypto assets.


Broker-Dealers

Broker-dealers will be scrutinized regarding Regulation Best Interest (Reg BI) and Form CRS obligations. The focus will be on assessing the alignment of broker-dealer practices with customer interests, especially concerning complex and high-risk products.


Risk Areas and Technology

Cybersecurity remains a cornerstone in the SEC’s examination strategy, ensuring entities have robust governance and protection measures. Similarly, the rise of artificial intelligence and its integration into financial services draws sharp scrutiny to ensure compliance and mitigate potential risks.


In conclusion, while the 2025 examination priorities from the SEC provide a roadmap for regulatory focus, they also serve as a vital tool for entities to self-evaluate and reinforce their compliance frameworks against potential risks, safeguarding investors and market integrity.


For more information, view the full article on Stinson LLP’s website.


Authored by Eric Mikkelson & Carissa Occhipinto, Stinson LLP

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!

Philadelphia’s Center City Office Market: A Summer of Transformation

This summer marked a significant shift in Philadelphia's Center City office market, as the long-standing effects of the COVID-19 pandemic and the rise of remote work began to thaw. Between June and August, five major office buildings changed hands, albeit for prices significantly lower than their previous valuations. This shift reflects the broader challenges facing commercial real estate in the era of hybrid work.

By |October 26, 2024|Categories: Article, Commercial Real Estate, Real Estate|Tags: , |0 Comments

The Best Investor Opportunities? Look South

In the ever-evolving landscape of real estate investment, the southern United States has emerged as a beacon of opportunity. A recent report from RealEstateNews.com highlights Florida, North Carolina, and Texas as the leading markets for investors seeking growth and stability.

Innovative Solutions to Tackle California’s Housing Crisis

In California's ongoing housing crisis, only 24 affordable units exist for every 100 extremely low-income households, highlighting a dire need for innovative solutions.

Housing Markets in Key U.S. Regions Face Elevated Risk

In a recent analysis by ATTOM, the housing markets of California, New Jersey, and Illinois have been spotlighted for their susceptibility to downturns. Despite a generally robust national market, these states exhibit significant vulnerabilities, particularly in the metropolitan areas of New York City and Chicago.

By |October 25, 2024|Categories: Article, Economic Analysis, Real Estate|Tags: , |0 Comments

The Metaverse: A New Frontier in Real Estate

As the virtual world continues to expand, the metaverse has emerged as a transformative force in the real estate industry, offering a unique opportunity to diversify investments and acquire new skills.

By |October 25, 2024|Categories: Article, Real Estate, Technology|Tags: |0 Comments

Remote Work Reshapes California’s Living Landscape

The COVID-19 pandemic has ignited a seismic shift in the work habits of Californians, with remote work becoming a staple across various industries.