SEC Division of Examinations Releases 2023 Priorities

At the beginning of February, the SEC’s Division of Examinations announced its 2023 examination priorities. The Exams staff identified ESG-related investments and strategies that incorporate ESG criteria as a top focus area including a continued focus on potential “greenwashing” at investment firms. Additionally, the staff will continue to focus on the calculation and allocation of fees and expenses as well as valuation practices. Regarding cybersecurity, the SEC is zeroing in on third-party vendor cyber risks, including registrants' processes for understanding the security practices of their third-party products and services. One newer area of focus will be on the Derivatives Rule and Fair Valuation Rule implementation by investment companies. Other areas of focus for the Division of Examinations include:

  • Crypto Assets and Emerging Financial Technology
  • Broker-Dealer Risks (including credit, market, and liquidity risk management controls)
  • Custody and Safekeeping of Client Assets
  • Marketing Rule Compliance
  • Compliance Programs Generally

Click here to read a breakdown of the Division’s priorities from ACA Global.