The SEC’s 2026 Examination Priorities

On November 17, 2025, the U.S. Securities and Exchange Commission Division of Examinations released its Fiscal Year 2026 Examination Priorities Memorandum. While many anticipated items appear, several noteworthy points stand out:

• Artificial Intelligence (AI): Examinations will assess whether investment advisers have implemented policies to monitor and supervise AI technologies across function areas, and the adequacy of such policies and procedures to govern AI usage.
• Regulation S-P: The Division will engage firms on their progress at implementing and adhering to the requirements under the recent amendments. .
• Alternative Investments and Complex Investments: Products such as private credit and private funds with extended lock-up periods will be reviewed for advisers’ adherence to fiduciary duties.  In addition, Examinations will focus attention on the “retalization” of asset classes such as private equity and private credit.
• Fiduciary Obligations: Examinations will continue to focus on fiduciary standards of conduct, including:
  • The impact of financial conflicts of interest on impartial advice.
  • Consideration of key factors (cost, objectives, liquidity, risks, volatility, exit costs, etc.), and
  • Efforts to seek best execution to maximize client value.
• Certain Types of Advisers: Examinations will assess investment advisers to newly launched private funds, particularly those that have not previously advised private funds.  In addition, the priorities reference a focus on advisers that have business practices that may create additional risks and conflicts, such as dual registrants.
• Resource Deployment: Under Chairman Atkins, the Division is reassessing risk-based priorities and processes to address evolving market trends, emerging products, and geopolitical forces. Expect continued publication of Risk Alerts to help firms strengthen compliance programs.

Additional focus areas include cybersecurity and AML. The memorandum includes special considerations for investment advisers, broker-dealers, investment companies, self-regulatory organizations and other market participants.