The SEC’s Division of Examinations recently outlined its 2025 examination priorities, reflecting its commitment to identifying and mitigating risks to investors and the market. Here’s a breakdown of the SEC’s primary focus areas:
1. Investment Advisers and Funds
- Fiduciary Standards: Ensuring investment advisers prioritize clients’ best interests and disclose any conflicts.
- Compliance Programs: Reviewing the effectiveness of policies and internal controls, particularly in fee structures, alternative revenue, and cybersecurity.
- Private Funds: Focused on transparency in fee calculations, asset valuation, and disclosure of risks.
2. Broker-Dealers
- Regulation Best Interest: Ensuring brokers act in clients’ best interests, with scrutiny on complex or high-risk products like crypto and options.
- Financial Responsibility: Assessing financial stability, focusing on liquidity and risk management, especially in high-risk environments.
3. Market Technology and Security
- Cybersecurity: Prioritizing information security to protect against operational disruptions and investor data breaches.
- Digital Engagement: Addressing AI, digital advice, and trading algorithms, ensuring technology aligns with investor protection obligations.
- Crypto Assets: Examining firms offering crypto services, focusing on risk disclosures, custody practices, and operational resilience.
4. Self-Regulatory Organizations and Other Participants
- The SEC will continue oversight of national exchanges, FINRA, and municipal securities, particularly ensuring these entities comply with their regulatory responsibilities.
Conclusion
With these priorities, the SEC aims to strengthen market integrity amid rapid technological evolution and growing investor diversity. The focus on cybersecurity, AI, and crypto assets signals the SEC’s proactive stance in managing emerging financial technologies. By directing resources to critical areas, the SEC reinforces its role in fostering a compliant, transparent, and investor-focused market.
For a full view of the SEC’s 2025 Examination Priorities, refer to their official report.
About Michael Rasmussen
Michael Rasmussen is the founder of United Atlantic Legal Services. He is a licensed attorney in Florida and registered solicitor in the United Kingdom. Michael has acted as General Counsel and Chief Compliance Officer to several investment advisers, including private fund managers, responsible for the management of billions of dollars in client assets.
Michael is also the founder of FinProLaw, an online learning platform where Michael has created courses designed for investment adviser compliance professionals. These courses include:
- Investment Adviser Compliance Essential for Chief Compliance Officers
- Foundations of Investment Adviser Compliance
- What is a “Security”?
- Investment Adviser Marketing Rule
- Regulation A – Exemption from Registration
- Regulation Crowdfunding – Exemption from Registration
- Regulation D – Exemption from Registration
Michael can also be found on LinkedIn.
Investment adviser firms who are also clients of United Atlantic Legal Services can receive many of these courses at a significantly reduced fee or, in some cases, at no expense. Contact us today or visit the FinProLaw to learn more.