The U.S. Securities and Exchange Commission’s Division of Examinations has unveiled its 2026 examination priorities, setting a refreshed agenda for regulatory scrutiny in the year ahead.[1] Rather than serving solely as a “gotcha” exercise, the SEC emphasizes that these priorities are designed to foster constructive dialogue with industry participants, giving firms a clearer lens on where examiners will concentrate, while encouraging them to strengthen compliance proactively.
Investment Advisers: Areas of Heightened Scrutiny
Among the top priorities for the SEC in 2026 are investment advisers, where the Division will continue its longstanding focus on fiduciary duties, including duty of care and duty of loyalty to clients. Examiners will probe how advisers manage conflicts of interest and assess the effectiveness of advisors’ compliance program. There is a pronounced emphasis on newly registered advisers, as well as those not recently reviewed, underscoring the SEC’s push to bring emerging firms into compliance-disciplined practices early.
Investment Companies: Key Examination Priorities
The SEC continues to prioritize examinations of registered investment companies, including mutual funds and ETFs, due to their importance to retail investors, especially retirement savers. Examinations will review funds’ compliance programs, disclosures, their filings (such as summary prospectuses), and governance practices. The Division will also monitor funds engaging in mergers or business combinations, funds using complex or less liquid strategies (e.g., closed-end funds), and funds with novel or leveraged structures
Broker-Dealer Priorities: Financial Responsibility, Trading Practices, and Retail Sales Conduct
In 2026, the SEC will focus on broker-dealers’ compliance with financial responsibility, trading practices, and retail sales obligations. Examiners will assess adherence to the Net Capital and Customer Protection Rules, including internal controls, timely reporting, and management of liquidity and counterparty risks. Trading-related practices under review will include equity and fixed-income execution, extended-hours trading, order routing, best execution, pricing of illiquid instruments, and compliance with Regulation NMS and SHO provisions. In the retail area, the SEC will examine recommendations under Regulation Best Interest, including account-opening guidance, complex product suitability, conflict mitigation, and protections for retirement and college-savings customers, as well as the accuracy and clarity of Form CRS disclosures regarding services, fees, and conflicts.
Cross-Cutting Risks: Cybersecurity, Resiliency, and Emerging Technology
Beyond role-specific priorities, the SEC’s 2026 agenda highlights significant risk areas that cut across the financial sector. Information security and operational resiliency remain central concerns: examiners will examine governance frameworks, access controls, data-loss prevention, incident response, and recovery plans. In light of evolving threats, including polymorphic malware and other sophisticated cyber risks, the SEC will test firms’ readiness to detect and respond to disruptions. The SEC will also assess how registrants use automated tools and algorithms, evaluating whether their disclosures are fair, whether operations align with public representations, and whether investor profiles are properly considered in algorithmic advice.
A Notable Shift: Crypto Dropped from the Agenda
Perhaps the most striking change in the 2026 priorities is the complete omission of any dedicated focus on crypto assets or digital currencies. Unlike prior years, when crypto was explicitly identified as a key risk area, the 2026 document contains no references to crypto, blockchain, or virtual currencies across any section. This marks a significant tonal shift, suggesting the SEC may now view crypto-related risks through a more technology-neutral lens rather than treating digital assets as a distinct regulatory category.
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The SEC’s 2026 examination priorities reflect both continuity and change, reaffirming the agency’s focus on fiduciary duty, customer protection, and operational resiliency while stepping back from its prior crypto-specific posture. For advisers, broker-dealers, and fund managers, this is an important moment to reassess compliance programs, especially in cyber governance, data privacy, and oversight of automated tools. Firms seeking proactive guidance or assistance preparing for upcoming examinations are encouraged to consult with experienced securities counsel. Our team is available to help evaluate your readiness and strengthen your compliance framework.
This article was written by Xiaoyang Li. For more information, contact xiaoyang@bull-legal.com or schedule a consultation.
[1] You may read the full Fiscal Year 2026 Examination Priorities at https://www.sec.gov/files/2026-exam-priorities.pdf.