Reg S-P sweep exams underway (Financial Advisor IQ)

The SEC seems intent on ensuring compliance with its updated Reg S-P Rule. The Financial Advisor IQ story discusses a sweep exam occurring via a source’s confirmation of an SEC request for its firm’s undertakings to comply with the Reg S-P amendments. Amy Lynch, FrontLine’s Founder and President, comments that sweep exams occurring this quickly are not a surprise considering firms had ample time to prepare, but may have been anticipating a postponement of the initial compliance deadline. When it comes to compliance with current regulations, she emphasizes that the SEC is very strict about firms meeting deadlines. The SEC also included Reg S-P compliance as one of its 2026 exam priorities, and she expects the SEC to start examining the largest of the large firms first before working its way down to smaller firms by their June 3, 2026 deadline. See Financial Advisor IQ (subscription required), “SEC Wasting No Time in Checking Reg S-P Compliance“