Every year the SEC publishes its Examination Priorities for the coming year. We reviewed those priorities with a focus on SEC Examinations for Advisers, with a view towards where examiners will be spending their time—and where advisory firms should be concentrating their compliance resources. See the full FY 2026 Exam Priorities document. If you are interested, you can compare these to the 2025 Exam Priorities.
Core Themes Advisers Should Expect in 2026
1. Fiduciary Duty Remains the Center of Gravity
Examiners will continue evaluating whether advisers are meeting their fiduciary obligations, with emphasis on:
- Conflicts of interest (particularly those involving compensation, affiliated service providers, and revenue-sharing arrangements)
- Investment recommendations and advice processes
- Fee and cost transparency
- Best execution
- Oversight of supervised persons
Expect examiners to drill into documentation. Firms should have a clear narrative that ties recommendations to the client’s profile, risk tolerance, goals and costs.
2. Compliance Programs Must Be Robust—and Enforced
The Division will continue testing whether advisers’ compliance programs:
- Are tailored to the firm’s actual business
- Address material risks
- Receive ongoing review, testing and updates
- Have meaningful senior-management oversight
A “paper program” with policies that sound good but are not implemented remains one of the fastest paths to deficiencies.
3. Heightened Scrutiny of Newly Registered Advisers
New registrants—particularly private fund advisers—will remain a priority. Examiners will assess whether these firms:
- Have built an operational compliance framework suited to the adviser’s business
- Understand and apply their regulatory obligations
- Maintain adequate books and records
- Have implemented a credible compliance culture from day one
If you were recently registered or have never been examined, assume your number may come up.
4. Custody Rule Focus—Especially on Safeguarding Controls
Expect a continued focus on:
- Proper use of qualified custodians
- Misinterpretations of “custody” (e.g., passwords, standing letters of authorization, certain SLOAs)
- Unexpected ownership arrangements
- Fee deduction practices
Advisers should ensure internal controls align with the SEC’s custody interpretations—examiners frequently uncover custody violations that advisers never realized existed.
5. Regulation S-P Amendments: Incident Response and Information Safeguards
The 2024 amendments to Regulation S-P are front and center for 2026 exams. Examiners will evaluate:
- Written incident-response programs
- Procedures for safeguarding customer information
- Data-retention and disposal practices
- Third-party vendor oversight
Advisers should assume examiners will request documentation of testing, monitoring and past incidents.
6. Marketing Rule Compliance
Although the Marketing Rule is no longer new, it is very much alive in examinations. Advisers should anticipate review of:
- Performance presentations
- Hypothetical performance policies
- Testimonials and endorsements
- Third-party ratings
- Substantiation of all claims
Marketing materials and Form ADV disclosures must align—and firms should expect examiners to check.
How Advisers Should Prepare Now
A. Conduct a pre-exam risk assessment
Identify gaps in:
- Conflicts policies
- Fee billing
- Custody processes
- Vendor management
- Cybersecurity controls
- Marketing materials and review workflows
B. Refresh compliance testing
If your annual review hasn’t been substantive—or hasn’t happened—expect a problem.
C. Document everything
As always, documentation is evidence. Without it, examiners will assume it didn’t happen because if it is not in writing, it really didn’t happen.
D. Train supervised persons
Front-line personnel should understand the firm’s obligations and know how to respond to examiner questions.
Bottom Line
The SEC’s 2026 Examination Priorities do not represent an exhaustive list of what examiners will review, but they are the clearest blueprint advisers will see. For investment advisers, the message is straightforward: demonstrate a real, functioning compliance program; manage conflicts; protect client information; and maintain a defensible record of your advice, oversight and controls.
For more information, contact the securities lawyers at Sallah Astarita & Cox at 212-509-6544 or visit Securities Lawyer
