Setting the Agenda for the SEC in 2023: Prioritizing Innovation and Growth

By: Bobby Dormanesh

On February 7, 2023, the SEC’s Division of Examinations announced its 2023 priorities (LINK). Examination priorities are published annually and provides insight into what the Division considers are potential risk to investors.

The following are key issues highlighted in the Divisions 2023 priorities:

• New Investment Adviser and Investment Company Rules – Specifically, the Division will focus on the new Marketing Rule, the Derivatives Rule, and the Fair Valuation Rule. Check out our previous blog post (LINK) for insight into the Marketing Rule.
• RIAs to Private Funds – Examinations will focus on compliance programs, fees and expenses, custody, conflicts of interest, and the use of alternative data. Additionally, the Division will be taking a look at portfolio strategies, risk management, and the calculation and allocation of fees and expenses.
• Promoting Sustainable Investing – The Division will focus on ESG by ensuring that funds are complying with their offering documents and operating in a manner set forth in their disclosures.
• Strengthening Cybersecurity – The Division will review practices that prevent interruptions to mission-critical services and protect investor information. Furthermore, the Division will be focused on whether advisers and broker dealers satisfy applicable AML requirements.

Ultimately, the SEC is looking to enhance investor protection and market integrity. The underlying goal with respect to investor protection is ensuring that they are treated fairly and equitably. Market integrity includes the SEC’s focus on reducing market manipulation, as well as improved accuracy and timeliness of market data.

How we can help

CLA is here to help you navigate the SEC’s new priorities and constantly evolving regulatory landscape. Our team members are available to help you identify the right talent solution to ensure your compliance needs are met, or can supplement your operations by offloading back-office responsibilities so that you can focus on fundraising.