2026 SEC Examination Priorities - Division of Examinations
The SEC’s Division of Examinations has released its 2026 SEC Examination Priorities. The SEC develops its examinations priorities in coordination and consultation with the other divisions and offices throughout the SEC and by considering, among other things, prior years’ examinations, market events, information gathered through participation in conferences and conversations with investors, registrants, industry groups, and other regulators. They reflect practices, products, and services that the Division believes present potentially heightened risks to investors or integrity to the U.S. capital markets. They are not the only areas the Division will address in examinations.
The Report address compliance related priorities for Municipal Advisors, Broker-Dealers and other SEC registrants. Here are some highlights from the Report.
Broker-Dealers
Broker-Dealer Trading-Related Practices and Services:
Examinations will continue to focus on broker-dealer compliance with the net capital rule, the customer protection rule and related internal processes, procedures, and controls.
Retail Sales Practice, Including Compliance with Regulation Best Interest:
“A focus on broker-dealer equity and fixed income trading practices remains a Division priority. Areas of review will include broker-dealer trading practices associated with extended hours trading, and municipal securities, including the rates reset process on variable rate demand obligations, priority of orders, and mark-ups disclosure. The Division will also review broker-dealers’ routing and execution of orders….”
Municipal Advisors
“The Division will continue to examine whether municipal advisors have met their fiduciary duty to municipal entity clients when engaging in municipal advisory activities, such as providing advice or 11 recommendations regarding the pricing or method of sale of municipal securities (e.g., recommending a competitive versus negotiated sale). The Division will also continue to examine whether municipal advisors have complied with MSRB Rule G-42, which establishes the core standards of conduct and duties applicable to non-solicitor municipal advisors, including requirements to disclose conflicts of interest and to document municipal advisory relationships. Finally, the Division will continue to assess whether municipal advisors have made required filings with the Commission and met their professional qualification, registration, recordkeeping, and supervision requirements.”
