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.

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!

The AI Tipping Point: How Artificial Intelligence Is Rewriting the Real Estate Playbook

Artificial intelligence has shifted from a novelty to a defining force in real estate, transforming everything from listing creation to virtual staging while raising new legal and ethical risks. As AI adoption accelerates, experts warn that the agents who embrace automation and new tools now will gain a major competitive edge, while those who delay could fall behind in a rapidly evolving industry.

Want Job Security in the Age of AI? Get a State License

As AI and automation reshape the workforce, one form of career protection remains as powerful as ever: earning a state license. From real estate to trades to finance, licensed professionals stay in high demand because their work requires proven competence, accountability and human judgment—qualities technology can enhance but never replace. With trade enrollment surging, investor interest growing and licensing on the rise across the country, credentials have become a reliable path to stability, mobility and long-term earning potential.

AI Tools Are Transforming Agent‑Buyer Connections Ahead of 2026

A new wave of AI platforms is redefining how real estate agents identify buyer intent, spark conversations, and nurture relationships. From conversational home search engines to predictive opportunity alerts and relationship‑intelligence systems, these tools are helping agents connect sooner and smarter—reshaping daily workflows as the 2026 market approaches.

Texas Investors Fuel San Francisco’s Real Estate Revival

Texas money is riding hard into San Francisco, snapping up distressed downtown buildings at prices not seen in decades. From Union Square to California Street, major players like Lone Star Funds are betting big on the city’s rebound, signaling that the market may have finally hit bottom and that a new wave of opportunity is taking shape for savvy real estate professionals nationwide.

Holiday Spending Hits $1 Trillion—But CRE Experts Warn It May Be an Illusion

The 2025 holiday season is expected to break the $1 trillion sales mark, but economists say the milestone masks deeper consumer caution, income‑driven spending gaps, and weakening unit sales. Urban Land Magazine’s latest analysis shows how these mixed signals are shaping a selective, uneven landscape for U.S. commercial real estate heading into 2026—where strong locations thrive, weaker assets struggle, and affluent shoppers continue to dictate market performance.

Housing Market Predictions for 2026: Are Home Prices Finally Ready to Cool Off?

As 2025 ends, the housing market is inching toward balance with slower price growth, rising inventory, and steadier mortgage rates. Experts predict modest 1% to 2% home‑price growth in 2026—not a crash, but a calmer, more predictable market shaped by regional differences. With the Fed easing rates and inventory climbing in key cities, 2026 may become the most buyer‑friendly year in recent memory, especially for those prepared to act when the right home appears.