SEC rulemaking to influence upcoming exams (Financial Advisor IQ)

The release of the SEC’s recent examination priorities emphasized a host of focus areas for its upcoming exams. Interestingly, the SEC described its view on certain areas that fall under current rulemaking, such as ESG, cybersecurity and new private fund regulations. Amy Lynch, FrontLine’s Founder and President, comments that these areas were purposely covered in the SEC’s priorities statement so that firms are on notice to begin preparing for them ahead of time. Ms. Lynch explains that the SEC wants firms to look at their compliance programs today, and evaluate them against proposed rule requirements so that they will be more fully prepared for a future exam once the rules are adopted. See Financial Advisor IQ, “SEC Exams to Target Compliance with Spate of New Rules“