More SEC exams ahead with a risk-focused approach (ThinkAdvisor)

Investment advisers should prepare for an increased SEC examination frequency in 2026, but with some new twists. This includes more reliance on targeted exams or “sweeps” and more risk-focused document requests based upon previous findings at firms. In the lead comments, FrontLine Compliance Founder and President, Amy Lynch, cites two likely areas of exam focus this year – Reg S-P compliance and firms’ use of artificial intelligence (AI). There could also be a large emphasis by the SEC on ensuring compliance with retail investors, and curtailing fraud. The article also highlights FrontLine’s recent ComplianceAlert, “The Hidden Messages Within the SEC’s 2026 Exam Priorities,” which describes the SEC’s focus this year to be one of conducting more routine exams with shorter exam periods and risk-focused reviews to narrow the scope, looking for “low-hanging fruit” to include in deficiency letters or enforcement actions. The SEC has also stepped up enforcement of new rules, notes Ms. Lynch, now launching targeted exams in a more expedited fashion than waiting at least two years, which had been the norm. See ThinkAdvisor, “Expect Targeted AI Exams, Retail Fraud Crackdown in 2026”