The Securities and Exchange Commission’s (SEC) Division of Examinations outlined its examination priorities for 2024, highlighting emerging and core risk areas for investment advisers, broker-dealers, and other entities. Particular attention will be given to cybersecurity and crypto assets.
Published on October 16, 2023, the 2024 Priorities focus on specific practices, products, and services that the Division believes present potentially heightened risks to investors or the integrity of the market. This was reported by Latham & Watkins LLP.
The Division is addressing both long-standing and emerging concerns. Cybersecurity has continued to be a consistent focus of the SEC due to the increasing volume of cyber threats and incidences in recent years. The rise and impact of crypto assets has also merited attention due to its rapid evolution and potential to affect market stability.
It is crucial for legal professionals, especially those working in large corporations and law firms, to be aware of these examination priorities, as they will set the tone for regulatory concerns in the upcoming year. Ensuring institutions are compliant with these focus areas can demonstrate commitment to risk management and potentially mitigate any regulatory challenges that may arise.
As 2024 draws near, legal professionals would do well to keep a close eye on these priorities to assist their clients and organizations in navigating the evolving regulatory environment.