SEC Sets Fiscal 2027 Examination Priorities Across Investment and Brokerage Markets

The U.S. Securities and Exchange Commission (SEC) has announced the Fiscal Year 2027 examination priorities for its Division of Examinations, setting out the areas that will receive heightened attention across the securities industry. The risk-based program will cover more than 34,000 registrants, including investment advisers, investment companies, broker-dealers, self-regulatory organizations, clearing agencies, municipal advisors, transfer agents, funding portals and security-based swap entities. The priorities include investment advisers’ fiduciary obligations, conflicts of interest, investment recommendations and compliance programs. The SEC will also focus on retail investor protection involving complex, higher-risk and illiquid products, as well as private funds, private credit and other complex investment strategies. For broker-dealers, examination areas include financial responsibility, trading practices, supervision and anti-money laundering compliance. Operational resilience, cybersecurity and the protection of customer information are also identified as key areas. The Division will examine emerging technologies, including superintelligence and other advanced technologies that could affect market operations, compliance, fraud prevention and investor protection. It will additionally monitor risks linked to evolving market infrastructure, including Treasury clearing reforms, tokenization and related developments, alongside the activities of self-regulatory organizations and other critical market participants. The SEC said the priorities were developed with input from its divisions and offices, fellow regulators, industry engagement, examination observations, market developments and investor concerns. The list is not exhaustive: examiners will continue to assess compliance with federal securities laws across registrants’ activities, while firms are expected to maintain strong, risk-based compliance programs tailored to their businesses. The Division may adjust its focus during Fiscal Year 2027 in response to market events, investor concerns, new products and services, emerging technologies and other developments.