SEC's 2025 Examination Priorities: Key Focus Areas - Success Focused Real Estate License Classes And More April 17, 2025

On October 21, 2024, the Division of Examinations of the Securities and Exchange Commission (SEC) released its much-anticipated 2025 examination priorities. This announcement serves as a crucial guide for registered investment advisers, investment companies, and broker-dealers, highlighting areas under scrutiny for the upcoming year. Despite the potential for shifts in focus due to a changing presidential administration, many core enforcement areas are expected to remain consistent.

Key areas of focus include conflicts of interest disclosures, compliance with Regulation Best Interest (Reg BI), cybersecurity, and the growing impact of artificial intelligence and crypto assets. The Division’s emphasis on these areas signals its commitment to maintaining rigorous standards in the financial sector.

Investment Advisers

The Division maintains its tradition of prioritizing examinations for investment advisers who have never been examined, newly-registered advisers, and those not recently reviewed. The focus for 2025 will be on fiduciary standards, compliance programs, and private fund advisers.

Fiduciary Duties

Investment advisers must adhere to fiduciary standards of conduct, acting in the best interests of their clients. The Division will pay close attention to advice on high-cost products, unconventional instruments, and assets sensitive to market changes, such as commercial real estate.

Compliance Programs

Compliance with Rule 206(4)-7 under the Investment Advisers Act of 1940 remains a priority. This includes adopting and implementing compliance policies, designating a chief compliance officer, and conducting annual reviews. The Division will evaluate core compliance areas, including marketing, valuation, and portfolio management.

Broker-Dealers

The SEC has previously taken action against broker-dealers for Reg BI violations and Form CRS obligations. In 2025, these remain top priorities, along with financial responsibility and trading-related practices.

Regulation Best Interest

Broker-dealers must ensure recommendations are in the best interests of their clients. The Division will assess conflict of interest disclosures and practices for identifying, mitigating, and eliminating conflicts.

Form CRS

Broker-dealers are required to provide Form CRS to all retail investors. The Division will review the content of these relationship summaries for accuracy and completeness.

Risk Areas

Cybersecurity, compliance with recent regulatory amendments, financial technologies, and crypto assets are highlighted as presenting the highest risks to investors and markets.

Cybersecurity

The Division will focus on registrant practices to prevent service interruptions and protect investor information, emphasizing policies, governance, and incident response.

Financial Technologies

With the rise of AI, the 2025 priorities emphasize the use of automated investment tools and digital engagement practices. The Division will assess how AI is implemented and monitored.

For more detailed insights, you can refer to the original article by Eric Mikkelson and Carissa Occhipinto at Stinson LLP.

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!

New Policy by REBNY Mandates Direct Payment to Buyer’s Agent
Gallery
New Policy by REBNY Mandates Direct Payment to Buyer’s Agent

Real Estate Policy

New Policy by REBNY Mandates Direct Payment to Buyer’s Agent

The Real Estate Board of New York (REBNY) has announced a new policy requiring sellers to directly pay the buyer's agent, effective from January 1. This significant shift aims to enhance transparency and address potential conflicts of interest in real estate transactions. The policy comes amidst ongoing lawsuits related to commission sharing and allegations of unethical practices. The implementation of this policy is expected to impact the real estate industry significantly, with sellers needing to factor in the cost of the buyer's agent commission when pricing their properties.

Senate Decision Sparks Controversy Over Small Business Lending
Gallery
Senate Decision Sparks Controversy Over Small Business Lending

Small Business Lending

Senate Decision Sparks Controversy Over Small Business Lending

In a significant development, the U.S. Senate has voted to block the implementation of the Consumer Financial Protection Bureau's (CFPB) small business lending rule. This decision has sparked a heated debate over the impact it may have on small businesses across the country. President Biden, in response, has threatened to veto the Senate's decision, emphasizing his commitment to fair lending practices and supporting small businesses. The CFPB's rule, implemented in October 2020, requires lenders to collect and report data on small business lending. This includes information on the race, sex, and ethnicity of borrowers, with the aim of identifying and addressing potential disparities in access to credit for minority-owned and women-owned small businesses. The Senate's decision to block the CFPB's rule has been celebrated by small business advocates and industry groups critical of the CFPB's regulatory approach. However, the implications of this decision remain uncertain, as President Biden's threatened veto looms large.

By Cameron Academy Author|October 26, 2023|Categories: Small Business Lending|Tags: Small Business Lending Rule|0 Comments

Assessing the Merits of Class-Action Commission Lawsuits
Gallery
Assessing the Merits of Class-Action Commission Lawsuits

Real Estate Lawsuits

Assessing the Merits of Class-Action Commission Lawsuits

The world of real estate has recently been shaken by a wave of class-action commission lawsuits, sparking a contentious debate. These lawsuits demand scrutiny to understand their implications and validity. A primary counter-argument is the freedom of consumer choice. In today's digital age, potential buyers and sellers have access to a wealth of online resources, enabling them to undertake real estate transactions independently. Another critical factor is the negotiability of commissions in the real estate sector. Commission rates are not fixed, they are subject to negotiation between the agent and the client. This flexibility allows for open discussions, leading to mutually agreeable terms. Despite the emergence of discount brokerage firms, consumers continue to place their trust in traditional real estate agents. This preference stems not only from cost considerations but also from the value of expertise, guidance, and personalized service that agents offer. Real estate transactions are complex and often involve significant financial investments. Trusted agents provide invaluable insights, market knowledge, and negotiation skills, helping clients make informed decisions and navigate potential challenges confidently.

By Cameron Academy Author|October 26, 2023|Categories: Real Estate Lawsuits|Tags: Class-Action Commission Lawsuits in Real Estate|0 Comments

Understanding the Current Housing Market: The Affordability of the Typical US Home
Gallery
Understanding the Current Housing Market: The Affordability of the Typical US Home

Real Estate Market Analysis

Understanding the Current Housing Market: The Affordability of the Typical US Home

In the last two years, the housing market has seen a dramatic shift. Soaring mortgage rates and rising home prices have led to the fastest erosion in housing market affordability in modern history, with first-time homebuyers feeling the impact the most. The housing market has undergone significant changes over the past two years, leading to a substantial increase in the income required to purchase a median-priced home. According to recent data from Redfin, a homebuyer must now earn $114,627 to afford the typical U.S. home. This is a 15% increase from the previous year and more than 50% higher than pre-pandemic levels.

By Cameron Academy Author|October 25, 2023|Categories: Real Estate Market Analysis|Tags: Current Housing Market Affordability|0 Comments

Unwavering New Listings Data Amid 8% Mortgage Rates
Gallery
Unwavering New Listings Data Amid 8% Mortgage Rates

Australian Housing Market

Unwavering New Listings Data Amid 8% Mortgage Rates

The housing market has shown remarkable resilience in the face of rising mortgage rates. Despite rates reaching 8%, new listings data remains steady, indicating a healthy supply of homes for sale. This stability is a positive sign for both buyers and sellers, demonstrating the strength of the housing market. Despite the increase in mortgage rates, sellers in the housing market have maintained their confidence. This confidence is reflected in the steady new listing data, as sellers continue to list their properties without hesitation. It indicates that sellers believe there is still strong demand from buyers and that the potential financial impact of higher mortgage rates does not outweigh the benefits of selling their homes.

By Cameron Academy Author|October 25, 2023|Categories: Australian Housing Market|Tags: Airbnb impact on the housing market|0 Comments

Revolution in the Real Estate Industry: New Requirement for Sellers to Compensate Buyers’ Agents
Gallery
Revolution in the Real Estate Industry: New Requirement for Sellers to Compensate Buyers’ Agents

Real Estate Industry

Revolution in the Real Estate Industry: New Requirement for Sellers to Compensate Buyers’ Agents

The Real Estate Board of New York (REBNY) has introduced a groundbreaking requirement for sellers to directly compensate buyers' agents. This significant change has the potential to transform the real estate industry, eliminating conflicts of interest and promoting a more client-centric approach. This shift in the compensation landscape aims to create a more transparent and trustworthy environment for buyers. Moreover, this shift towards a client-centric approach aligns with the mission and values of Cameron Academy. As a leading provider of real estate education, Cameron Academy is committed to empowering professionals to navigate the evolving industry landscape and prioritize the best interests of their clients.

By Cameron Academy Author|October 25, 2023|Categories: Real Estate Industry|Tags: Real Estate Industry Revolution|0 Comments

Previous 1···309 310 311 312313314 315 316 317···342 Next