On February 7, 2023, the U.S. Securities and Exchange Commission (SEC) Division of Examinations (EXAMS or Division) issued its annual examination priorities. The Division highlighted new, notable, and significant focus areas for examination along with other perennial priorities. Compliance with new Advisers Act rules, including the marketing rule, and Investment Company Act rules, including the derivatives rule and fair valuation rule, top the list of significant focus areas. Consistent with previous exam priority announcements, private fund advisers; adviser standards of conduct; environmental, social, and governance (ESG)–related issues; and cyber and digital assets remain top priorities.1
This article provides a concise summary of upcoming examination priorities and perennial issues registrants can anticipate in the following year’s examinations.
EXAMS Mission and Mandate
In its “Message From the Leadership Team,” the Division emphasized the “four pillars” of its mission: promoting compliance, preventing fraud, monitoring risk, and informing policy. In pursuit of those objectives, the Division highlighted certain examination initiatives for…
