SEC Releases 2026 Exam Priorities
The SEC’s Division of Examinations released its 2026 examination priorities late Monday, emphasizing fiduciary compliance, cybersecurity, and oversight of emerging technologies.
Private markets also feature prominently in the document as regulators come to grips with the surge in alternative-investment products now being designed for individual investors, but notably absent this year is any stand-alone section focused on crypto activity and the volatility of digital assets, as has been included in recent years.
Cryptocurrency is not mentioned once in the 15-page exam priorities document, as the SEC has elsewhere laid out a sweeping agenda to promote the development of the digital asset sector under the Trump administration.
The Division publishes its annual examination priorities to provide transparency to registrants and investors about the topics that the Division plans to focus on in the new fiscal year and to encourage firms to direct their compliance efforts on areas of potentially heightened risk.
“Today’s release of examination priorities should enable firms to prepare to have a constructive dialogue with SEC examiners and provide transparency into the priorities of the agency’s most public-facing division.”
SEC Chairman Paul S. Atkins
“Examinations are an important component to accomplishing the agency’s mission, but they should not be a ‘gotcha’ exercise,” said SEC Chairman Paul S. Atkins. “Today’s release of examination priorities should enable firms to prepare to have a constructive dialogue with SEC examiners and provide transparency into the priorities of the agency’s most public-facing division.”
The Division examines SEC-registered investment advisers, investment companies, broker-dealers, clearing agencies, and self-regulatory organizations, among others, for compliance with federal securities laws. The annual publication of the examination priorities furthers the SEC’s mission and aligns with the Division’s four pillars to promote and improve compliance, prevent fraud, monitor risk, and inform policy.
“In this increasingly complex and changing financial and regulatory environment, we strive to improve compliance in a way that that is both transparent and practical,” said Keith Cassidy, Acting Director of the Division of Examinations. “Fiscal year 2026 marks an important time for the Division to build on our strengths, advance our mission with renewed focus, and ensure that our examination program continues to protect the investing public and support fair and orderly capital markets.”
Examiners will scrutinize advisors’ adherence to duty of care and loyalty—especially conflicts of interest, best execution, recommendations to older and retirement investors, and use of complex or high-cost products.
The Division said it will focus on alternative investments (e.g., private credit and private funds with investment lock-up for extended periods). Examiners will also evaluate the effectiveness of compliance programs, fee-related disclosures, and controls at newly registered or never-examined firms.
In Section III on Broker-Dealers, subsection C notes that, “In particular, examinations will focus on those recommended products that are complex or tax advantaged, such as variable and registered index-linked annuities; ETFs that invest in illiquid assets such as private equity or private credit; municipal securities, including 529 Plans; private placements; structured products; alternative investments; and other products that have complex fee structures or return calculations, are based on exotic benchmarks, are illiquid, or represent a growth area for retail investment.”
Across market participants, the Division is prioritizing information security, including ransomware preparedness, AI-related cyber risks, identity-theft prevention under Reg S-ID, and readiness for the updated Reg S-P requirements. Reviews will also focus on automated advice, AI tools, and trading algorithms, ensuring controls match disclosures and deliver suitable recommendations.
Other priorities include oversight of SCI entities’ incident-response and vendor-risk management and ongoing AML compliance, with note of FinCEN’s plan to delay the new adviser AML rule to 2028.
While the 2026 examination priorities cover a broad landscape of potential risks to investors that firms should consider as they review and strengthen their compliance programs, the SEC noted in its 2026 exam priorities press release that it is not an exhaustive list of all the areas the Division will focus on in the upcoming year. The scope of any examination includes analysis of other risk factors such as an entity’s history, operations, and products and services.
Check out the full SEC 2026 examination priorities here.
SEE ALSO:
• SEC Working with DOL to Develop ‘Guardrails’ for Private Equity in 401(k)s
• Lawmakers Press DOL, SEC on Crypto Exposure in 401(k)s
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
