2025 Examination Priorities | Maxwell Baker Insights
VIGILANT INSIGHTS
Introduction
With the 2025 SEC exam priorities released last week, compliance professionals are analyzing their programs to ensure that they meet the regulatory requirements.
The use and advertising of technology is going to be a major focus for regulators.
While these topics have appeared in previous exam priorities, there will be particular focus on advertisements, third party oversight, and on-going cybersecurity risk assessment.
Vigilant Director, Maxwell Baker, Esq., provided insights to BoardIQ in their article discussing the new exam priorities.
Maxwell Baker Insights
The article highlights the SEC’s concern surrounding the way Fund Managers disclose the use of technology.
The language in disclosures and advertisement must match the actual practice of the Firm. Maxwell uses AI as an example; if there is language advertising the Fund’s use of AI or other analytical technology, Fund Directors should inquire into the actual practices of the business to ensure that their process is accurately described.
Maxwell emphasizes that you must say what you do and do what you say.
Vigilant’s Conclusion
It is vital that Firms carefully evaluate the SEC exam priorities and consider the strength of their compliance programs to handle the scrutiny of SEC examiners.
A proactive approach to compliance that anticipates potential investigative actions and adjusts accordingly is required for success in this current regulatory climate.
Leveraging deep industry insights and decades of combined compliance experience, Vigilant can help your Firm properly prepare for 2025. Our professionals can assess the strengths and weaknesses of your compliance programs through gap analysis and mock exams, among many options.
Reach out to use today to discuss any concerns or questions you may have.