SEC Examination Division Outlines Priorities for 2025

24 October 2024
The Securities and Exchange Commission’s (SEC) Division of Examinations has released its examination priorities for 2025. The Division publishes these priorities annually to inform investors and registrants about potential risks in U.S. capital markets and to highlight key focus areas for the upcoming fiscal year. This year’s priorities emphasize both enduring and emerging risks, including fiduciary duty, standards of conduct, cybersecurity, and the use of artificial intelligence. “The 2025 priorities of the Division of Examinations strengthen trust in our ever-evolving markets,” said SEC Chair Gary Gensler. “By examining compliance with our established rules, the Division plays a crucial role in protecting investors and supporting capital formation. Collaborating with registrants to clarify the rules helps ensure our markets work for both investors and issuers.” “Our 2025 priorities identify key risk areas and potential harm to investors,” stated Keith Cassidy, Acting Director of the Division of Examinations. “We encourage registrants to review their compliance programs in light of these identified areas and take necessary steps to safeguard investors and uphold fair and orderly markets.” The Division oversees SEC-registered investment advisers, investment companies, broker-dealers, clearing agencies, and self-regulatory organizations, focusing on compliance with federal securities laws. Through a risk-based approach, it prioritizes examinations of practices, products, and services that present increased risks to investors or the market’s integrity. The annual publication of priorities aligns with the SEC’s mission and the Division’s core objectives: promoting compliance, preventing fraud, monitoring risk, and informing policy. For fiscal year 2025, in addition to core areas like disclosures and governance, the Division will focus on compliance with new regulations, the integration of emerging technologies, and the robustness of controls protecting investor information, records, and assets. The 2025 priorities outline a broad spectrum of risks that firms should consider as they refine their compliance programs, though they do not represent an exhaustive list. Examinations will also consider other factors, including an entity’s history, operations, and range of products and services. To find out more details please visit : https://www.sec.gov/ |