The U.S. Securities and Exchange Commission (SEC) Division of Examinations has, in an unprecedented move, revealed its examination priorities for 2024 earlier than usual. Traditionally, the Division makes these announcements closer to the commencement of the calendar year. However, this year, to coincide with the start of the fiscal year, they’ve announced it earlier. This change, according to the Division, is aimed at providing investors with better information.
As reported on JD Supra on October 16, 2023, this announcement comes from the SEC Division of Examinations and marks a unique departure from past practice. The Division is responsible for conducting exams of entities regulated by the SEC including approximately 13,200 investment advisers managing over $97 trillion of assets.
While the specific details on the 2024 examination priorities are not readily available, the Division’s early announcement gives regulated entities more opportunity to understand and align with the regulator’s focus for the forthcoming year. Moreover, it gives investors valuable insights into the areas that will be scrutinized, ensuring transparency and accountability among investment advisers and other regulated firms.
Legal professionals, particularly those working in securities law, will find this shift in timeline beneficial. By making the examination priorities known well in advance, firms will have ample time to review their practices, policies, and procedures, and ensure they are well-prepared to meet the mandates of the Division in 2024.
We will continue to monitor these developments and keep our readers abreast of any updates released by the Division. Stay tuned for any further analysis on the priorities and practical guidance for navigating the SEC exam process.