On February 7, the Securities and Exchange Commission (SEC) announced its 2023 examination priorities for its Division of Examinations.
New areas of focus include compliance with:
Advisers Act Rule 206(4)-1 (Marketing Rule)
Investment Company Act Rule 18f-4 (Derivatives Rule)
Investment Company Act Fair Valuation Rule 2a-5
Examination priorities will continue focus on:
Registered Investment Advisors (RIAs) to private funds
Standards of conduct - Regulation Best Interest, Fiduciary Duty and Form CRS
Environmental, Social, and Governance (ESG) Investing
Information security and operational resilience, in particular the practices to prevent interruptions to mission-critical services and to protect investor information, records and assets.
Crypto assets and emerging financial technology, including mobile apps and automated digital investment advice
Governance, operations and compliance practices of investment advisors and investment companies, mutual funds and ETFs
Compliance and supervisory programs of broker-dealers and exchanges
Core risks, processes and controls of clearing and settlement agencies
Written policies and procedures of regulation systems compliance and integrity
Risk-based oversight of Financial Industry Regulatory Authority (FINRA) and Municipal Securities Rulemaking Board (MSRB)
Compliance with Anti-Money laundering (AML) obligations
Transitions away from the London Interbank Offered Rate (LIBOR)