By Steve Kansky, Regional Lead (East), Regulatory and Compliance, U.S.
The SEC’s Division of Examinations has released its 2026 priorities, and for registered investment advisers (RIAs), several key areas demand attention.
Fiduciary standards of conduct
Examiners will review investment advice and disclosures for consistency with fiduciary obligations, focusing on conflicts of interest, best execution, and recommendations aligned with client objectives, especially for complex or alternative investments.
Failure to demonstrate robust conflict management and clear alignment with client interests can result in regulatory findings, reputational harm, and costly remediation. RIAs must be able to evidence their decision-making and disclosure processes under scrutiny.
Effectiveness of compliance programs
Expect scrutiny of core compliance areas: marketing, valuation, trading, portfolio management, custody, and annual reviews. Policies must address conflicts of interest and be implemented effectively.
A compliance program that is not actively maintained or tailored to your business increases the risk of deficiencies during an exam. Regulators expect to see not just policies, but proof of ongoing monitoring, timely updates, and effective implementation.
Never-examined and newly registered advisers
The SEC will continue prioritizing firms that have never been examined, with emphasis on new registrants.
First-time exams can be intensive and set the tone for future regulatory relationships. Being unprepared can lead to findings that are difficult to correct retroactively.
Emerging tech and AI
Examiners will assess automated investment tools and AI-driven processes for accuracy, fairness, and alignment with disclosures and investor profiles.
RIAs using AI or automation in their investment process must have robust controls and clear documentation.
Regulation S-P compliance
With the December 3 compliance date approaching, RIAs must implement incident response programs and safeguards to protect customer information.
Data breaches or inadequate safeguards can result in regulatory actions, client loss, and reputational damage. Regulators will expect to see tested, documented, and effective data protection measures.
How to prepare
These priorities highlight the importance of proactive compliance management. Key steps for RIAs include:
- Reviewing disclosures and investment processes to identify and remediate conflicts of interest
- Maintaining compliance calendars and conducting comprehensive annual reviews
- For newly registered or never-examined firms, conducting mock exams and preparing staff for regulatory inquiries
- Reviewing technology governance and ensuring disclosures accurately reflect the use of AI and automation
- Developing and testing incident response plans and data protection safeguards
At IQ-EQ, our U.S. regulatory compliance team is closely monitoring these developments and stands ready to help firms navigate these priorities. We can help prepare you for examination, review these areas during your annual review, or advise on additional controls you can put in place. Get in touch today to learn more.
