Essential Edge SEC 2026 Examination Priorities: an Essential Summary

Each year, the Securities and Exchange Commission (SEC) publishes their annual examination priorities to encourage firms to direct their compliance efforts in these areas. As part of the 2026 examination priorities released on November 17, Chairman Paul Atkins stated that the announcement should give firms time to prepare for dialog with examiners on the report’s topics. The 2026 report includes a testament that the SEC will continue, as always, its focus on their Four Pillars: Promote Compliance, Prevent Fraud, Inform Policy, & Monitor Risk1 , but RIAs, BDs, and Investment Companies should all be prepared to demonstrate how they meet the requirements for the exam priorities detailed below.

RIAs will have an opportunity to demonstrate to the SEC how they adhere to strict fiduciary standards, create and follow effective compliance programs, and guide examiners through their cybersecurity practices. If your RIA has never been examined, or was recently registered, the SEC will prioritize your examination in 2026. Essential Edge’s recommendation is to review your policies and procedures now to ensure that you are confident in how your firm handles each account.

Examinations for Broker-Dealers will have an increased focus on the financial responsibility rules, trading related-practices and services, and retail sales practices. This is a great opportunity to speak with your FINOP to ensure your firm is running the necessary reports and calculations and documenting that process. The examiners will review your trading practices including extended trading hours, priority of orders, municipal securities, best execution, pricing of illiquid securities, as well as information required by rules 605 & 301(b)(1). The retail sales practices will likely focus on Regulation Best Interest, and how your firm adheres to those guidelines. Be prepared to show documentation for each transaction.

Investment Companies should be prepared for examiners to focus on fund fees and expenses, and portfolio management practices. Investment Companies that are heavily involved in mergers, complex strategies or strategies that involve less liquid investments, or novel strategies, should expect higher chances of an audit.

If you have time, Essential Edge highly recommends reading the full SEC 2026 Examination Priorities report to get a sense of what examiners are interested in and how it could impact your firm. As always, if outside compliance assistance would be beneficial, Essential Edge is here to help.

Aidan McNally, Senior Compliance Associate, focuses on supporting Essential Edge’s broker-dealer

and hybrid clients with a wide range of outsourced compliance functions, including branch exams, AML exams, supervision and the development of policies & procedures.