“`html

In a significant development, the Securities and Exchange Commission (SEC), through its Division of Examinations, has unveiled its 2025 examination priorities. These priorities, designed for registered investment advisers, investment companies, and broker-dealers, reflect a comprehensive focus on areas such as private fund advisers, Regulation Best Interest (Reg BI) compliance, and cybersecurity. The backdrop of a changing presidential administration adds a layer of complexity, though the SEC is known for maintaining continuity in its enforcement areas.


Eric t. Mikkelson Carissa occhipinto

Investment Advisers

The Division will prioritize examinations for investment advisers who have not previously been examined, with a strong emphasis on fiduciary standards, compliance programs, and private fund advisers. The focus will extend to reviewing investment advice, compliance programs, and ensuring transparency and disclosure in conflicts of interest, particularly in complex and high-cost products.


Fiduciary Duties

The Division remains focused on investment advisers’ adherence to fiduciary standards of conduct in 2025. As fiduciaries, advisers owe duties of care and loyalty to their clients. This means advisers must act in the best interests of their clients at all times, and they must eliminate or make full and fair disclosure of all conflicts of interest that have the potential to impact an advisers’ ability to render disinterested advice.


Broker-Dealers

Broker-dealers will be under scrutiny for their compliance with Regulation Best Interest and Form CRS obligations. Examinations will assess the soundness of investment recommendations and the adequacy of disclosure practices. Other emphasized areas include financial responsibility and trading-related practices.


Regulation Best Interest

With respect to broker-dealers, the Division will continue to examine broker-dealer practices related to Reg BI, which establishes the standard of conduct broker-dealers must follow when recommending securities transactions or strategies to clients.


Risk Areas

Key risk areas identified for 2025 include cybersecurity, financial technologies, and crypto assets. The Division stresses the importance of robust cybersecurity measures, compliance with recent regulatory amendments, and the responsible integration of financial technologies like AI in investment tools and advisory services.


By maintaining focus on these crucial areas, the Division aims to safeguard investors and ensure the stability and integrity of the financial markets. For more detailed insights, you can refer to the original article by Eric Mikkelson and Carissa Occhipinto on Stinson LLP’s website.


Download the PDF version for further reading.
“`

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!

UAE’s Vision for Desert Expansion and Urban Innovation

The UAE is set to transform its expansive desert landscapes into thriving residential communities, aligning with the nation's commitment to harnessing natural resources and the '15-minute city' model.

By |December 12, 2024|Categories: Article, Sustainable Development, Urban Planning|Tags: , |0 Comments

Exploring the Role of Telemedicine in Medical Education

In a recent study, researchers delved into the transformative impact of a telemedicine-based course on undergraduate medical students during the COVID-19 pandemic. As the pandemic reshaped the landscape of healthcare, telemedicine emerged as a vital tool, not only in patient care but also in medical education.

By |December 11, 2024|Categories: Article, Medical Education, Telemedicine|Tags: , |0 Comments

The Transformative Role of AI in Healthcare: Enhancing Patient Care and Health Management

AI technology holds the potential to improve clinical outcomes, reduce healthcare costs, and enhance population health. In the realm of preventive care, AI is being utilized in radiology to expedite cancer screenings, such as mammograms and lung cancer screenings.

By |December 11, 2024|Categories: Article, Artificial Intelligence, Healthcare|Tags: , |0 Comments

Revolutionizing Healthcare: The Future of Medical Networking

The transformation is paving the way for a future where care is more personalized, and the ecosystem is inclusive for medical practitioners and providers to proactively manage patients' health. A key component of this evolution is medical networking, which is being redefined by the collaborative exchange of data among practitioners, professionals, and healthcare facilities.

Innovative Urban Expansion: The UAE’s Vision for Sustainable Living

As the UAE's population continues to surge, developers are seizing the opportunity to transform the sprawling desert into vibrant residential communities.

The Call for Climate Change in Medical Curricula

As the world grapples with the multifaceted impacts of climate change, a new urgency is emerging within the medical community.