On February 7, the Division of Examinations of the Securities and Exchange Commission (the “Division”) released its 2023 Examination Priorities (the “Exam Priorities”). These priorities appear to spotlight registered investment advisers (“RIAs”) and, more specifically, private fund advisers. The document underscores areas where heightened staff scrutiny is expected, one such area being the Marketing Rule.
According to JDSupra, the Division is likely to focus on RIAs that present greater potential risks to clients, counter-parties and capital markets. These advisers, particularly those associated with private funds, are expected to be under notable pressure to ensure compliance with the SEC’s regulations, which have been updated continually over the past few years.
The Division’s increased attention to the Marketing Rule suggests that it requires greater regulatory oversight. This is perhaps due to its direct impact on promoting transparency and fair dealing in the financial markets. Consequently, RIAs need to be aware of this paradigm shift and be fully prepared for the high levels of scrutiny.
The Division has yet to fully disclose its detailed examination plans for 2023; however, it is clear that the emphasis will lean heavily towards ensuring transparency, consumer protection, and adherence to the refined set of regulations.