SEC Division Highlights 2024 Exam Priorities

In an annual report, the SEC Division of Examinations identified current risks for investors and registrants and highlighted key areas for examination in 2024.

The Division focused on the following priorities:

  • examinations of investment advisers and investment advisers to private funds, with a focus on compliance programs;
  • examinations of registered investment companies, including mutual funds and exchange-traded funds, "due to their importance to retail investors";
  • examinations of broker-dealers related to Regulation Best Interest, Form CRS, financial reporting rules and trading practices;
  • exchange order handling, surveillance and enforcement at the national securities exchanges, and risk-based oversight examinations of FINRA and the MSRB; and
  • risk management of liquidity, models and model validation, margin systems, third-party service providers, operations and examination areas at clearing agencies.

The Division said that it will also focus on other market participants, including (i) muni advisors, (ii) security-based swap dealers and (iii) transfer agents. The Division said that it will prioritize specific areas that cross a variety of market participants, including (i) information security and operational resiliency, (ii) digital assets and emerging technologies, (iii) Regulation Systems Compliance and Integrity ("Regulation SCI") and (iv) anti-money laundering issues.

Tags