The Securities and Exchange Commission’s Division of Examinations publishes its annual examination priorities to inform investors and registrants of potential risks in the U.S. capital markets and to highlight the examination topics it plans to focus on in the new fiscal year.
This year’s examinations will prioritize both perennial and emerging risk areas, such as fiduciary duty, conduct standards, cybersecurity, and artificial intelligence.
“The 2025 examination priorities of the Division of Examinations enhance confidence in our constantly evolving markets,” stated SEC Chair Gary Gensler.
The Division reviews compliance with federal securities laws by investment advisers, investment companies, broker-dealers, clearing agencies, and self-regulatory organizations, among other SEC-registered entities.
It also prioritizes examinations of practices, products, and services that, based on a risk assessment, pose higher risks to investors or the integrity of the U.S. capital markets.
The annual publication of examination priorities promotes the SEC’s mission and aligns with the Division’s four pillars: promoting and enhancing compliance, preventing fraud, monitoring risk, and informing policy, the Commission’s statement added.
For fiscal year 2025, in addition to conducting examinations in core areas such as disclosure practices and governance standards, the Division will also assess compliance with new regulations, the use of emerging technologies, and the robustness of controls aimed at protecting investor information, records, and assets.
The 2025 examination priorities cover a wide range of potential risks for investors that companies should consider when reviewing and strengthening their compliance programs.
However, this list is not exhaustive regarding all the areas the Division will focus on next year. The scope of any examination may include analysis of other risk factors, such as an entity’s history, operations, and products and services.
“Our 2025 examination priorities identify key areas of potentially higher risks and related harms to investors. We expect registrants to assess their compliance programs in the areas we’ve identified and make necessary changes to protect investors and maintain fair and orderly capital markets,” said Keith Cassidy, Acting Director of the Division of Examinations.
