The U.S. Securities and Exchange Commission set examination priorities for more than 34,000 registered firms and entities for fiscal 2027, targeting risks to investors and market integrity, the agency said.
The priorities can change during the year and do not cover everything examiners will review, the SEC said in “SEC Announces Fiscal Year 2027 Examination Priorities,” published Oct. 23.
The Division of Examinations said it based its priorities on observations from examinations, market developments, investor concerns, discussions with the industry and emerging trends. It developed them with other divisions and offices across the SEC.
The division said the priorities identify areas that its current assessments place at higher risk. Those assessments will help determine where it directs examinations during the fiscal year.
The division said its examination responsibilities cover investment advisers, investment companies, broker-dealers and organizations that oversee their own industry members. They also cover clearing agencies, municipal advisers, transfer agents, funding portals and firms involved in swaps tied to securities.
SEC Chairman Paul S. Atkins said examinations help the agency check compliance with federal securities laws and protect investors. He said they also give the commission information about emerging risks, changes in business practices and developments across the financial system.
Keith Cassidy, director of the SEC’s Division of Examinations, said the program needs to change alongside the markets it oversees. He said the division’s approach allows it to respond to changing conditions and identify developing risks.
Cassidy said the division continually assesses firms, products and market activities to decide where examinations can have the greatest effect. He said that approach also allows examiners to respond to innovation and changes in markets.
The division said it will continue checking compliance with federal securities laws and regulations across the full range of activities at registered firms. It expects firms to maintain compliance programs that address the risks specific to their businesses.
The division also said it is working to make it easier for registered firms to receive examination findings and communicate with staff during examinations. It is strengthening coordination with SEC offices that develop policy and with other regulators to help apply federal securities laws consistently.
The division said it will reassess risks throughout the year. Market events, investor concerns, emerging technologies, new products and services, and other securities market developments could lead it to change the areas receiving attention.
