SEC 2026 Compliance Outreach Programs: Key Takeaways for RIAs and RICs

Industry Events

Introduction

In May and June 2026, the SEC hosted virtual Compliance Outreach Program Regional Seminars for Investment Advisers and Investment Companies in Atlanta and New York.

The programs provided insight into examination priorities, common deficiencies, Regulation S-P (“Reg S-P”) implementation, fiduciary obligations, Private Fund examinations, and compliance program expectations.

While the presentations covered a broad range of topics, several common themes emerged regarding how SEC examination staff evaluate Firms and the areas receiving examination attention. Below are Vigilant’s key takeaways from both events.

Key Takeaways

1. Compliance Programs Must Be Tailored to the Business and Supported by On-Going Testing

Throughout the New York seminar, SEC staff emphasized that compliance programs should be reasonably designed for a Firm’s specific operations and risks.

Examiners repeatedly discussed the importance of:

• Maintaining policies and procedures that reflect actual business practices.
• Periodically testing compliance controls throughout the year.
• Documenting exceptions and remediation efforts.
• Updating policies and procedures when business operations, products, or regulations change.
• Ensuring practices remain aligned with disclosures and compliance documentation.

SEC staff also noted that Firms should be able to demonstrate how compliance policies are implemented and enforced in practice, rather than simply maintaining written procedures.

2. Fiduciary Duty Remains Central to SEC Examinations

The New York seminar included discussion surrounding an Adviser’s fiduciary obligations, including both the Duty of Care and Duty of Loyalty.

Areas highlighted by SEC staff included:

• Due diligence supporting investment recommendations.
• Best execution reviews.
• Product suitability and liquidity considerations.
• Compensation arrangements and revenue-sharing practices.
• Identification and disclosure of conflicts of interest.
• Private Fund allocation and valuation practices.

Examiners emphasized the importance of demonstrating why recommendations and advice are appropriate for clients and how Firms evaluate potential conflicts when providing Advisory Services.

3. Conflicts of Interest Continue to Receive Examination Attention

Across multiple presentations, SEC staff discussed the importance of identifying, disclosing, and addressing conflicts of interest.

Examples discussed included:

• Affiliate relationships.
• Compensation structures.
• Revenue-sharing arrangements.
• Expense allocations.
• Fee calculations.
• Side letter arrangements.
• Valuation-related conflicts.

SEC staff specifically noted that Firms should not assume they have no conflicts of interest and should maintain procedures designed to identify and address potential conflicts as business operations evolve.

4. Private Fund Examinations Continue to Focus on Fees, Expenses, Valuation, and Disclosures

The New York seminar devoted attention to Private Fund examinations and areas receiving scrutiny during reviews.

Topics discussed included:

• Fee and expense allocations.
• Fee offsets and affiliate fee offsets.
• Valuation methodologies.
• Investment allocation practices.
• Side letter administration.
• Performance fee and carried interest calculations.
• NAV financing facilities.
• Interfund lending arrangements.
• Industry concentration and investment exposure disclosures.
• Private Credit, Hedge Fund, and Venture Capital Fund practices.

A consistent message from exam staff was the importance of ensuring that actual practices align with Fund documents, offering materials, investor disclosures, and due diligence responses.

5. Reg S-P Implementation Remains an Important Examination Area

The Atlanta seminar focused extensively on the Reg S-P amendments and related examination considerations.

SEC staff discussed expectations surrounding:

• Written incident response programs.
• Policies and procedures addressing unauthorized access to customer information.
• Timely notification obligations.
• Safeguards for customer information.
• Recordkeeping requirements.
• Protection of nonpublic personal information.

Examiners indicated they will assess whether Firms have adopted policies and procedures that are appropriately tailored to their business and whether those procedures have been implemented.

6. Cybersecurity Reviews Extend Beyond Written Policies

The SEC’s Technology Controls Program (TCP) provided insight into how cybersecurity-focused examinations are conducted.

Areas that may be reviewed include:

• Governance and risk management.
• Access controls.
• Data loss prevention.
• Vulnerability management.
• Incident response processes.
• Business continuity and disaster recovery planning.
• Vendor management.
• Cybersecurity training and awareness.

SEC staff explained that examinations often involve interviews with compliance personnel, technology personnel, and cybersecurity representatives to assess whether Firms are operating in accordance with their documented controls and procedures.

7. Vendor Oversight Remains an Important Area of Review

During the Atlanta seminar, SEC staff acknowledged that many Advisers rely on Outsourced Technology and Cybersecurity Providers.

However, staff emphasized the importance of maintaining oversight of Third-Party Service Providers, including:

• Understanding vendor responsibilities.
• Reviewing vendor controls and capabilities.
• Monitoring service provider performance.
• Maintaining appropriate documentation.
• Evaluating how service providers respond to cybersecurity incidents.

The SEC noted that outsourcing functions does not eliminate a Firm’s responsibility for overseeing those activities.

8. Accurate Disclosures and Regulatory Filings Matter

Throughout the New York seminar, SEC staff highlighted the importance of maintaining accurate and consistent disclosures.

Areas discussed included:

• Form ADV disclosures.
• Marketing materials.
• Regulatory filings.
• Client communications.
• Fund offering documents.

Staff specifically noted that inconsistencies between disclosures, policies, and actual business practices can create examination concerns and may indicate broader compliance weaknesses.

9. Examination Readiness Begins Before an Examination Starts

SEC staff provided practical observations regarding examination preparedness and engagement with examination teams.

Topics discussed included:

• Maintaining organized books and records.
• Providing documents on a rolling basis.
• Communicating promptly regarding document requests.
• Preparing personnel for examination interviews.
• Ensuring key employees understand the firm’s operations, risks, and compliance processes.
• Utilizing a Day One presentation to help exam staff understand the business.

Examiners also emphasized the importance of accuracy, responsiveness, communication with examination staff, and prompt remediation when issues are identified.

Vigilant’s Conclusion

The SEC’s 2026 Compliance Outreach Programs in Atlanta and New York reinforced several consistent examination themes. SEC staff repeatedly emphasized the importance of maintaining compliance programs that are tailored to a firm’s operations, periodically tested, and supported by appropriate documentation and oversight.

The seminars highlighted continued examination attention on fiduciary obligations, conflicts of interest, fee and expense practices, Private Fund operations, valuation processes, cybersecurity controls, vendor oversight, Reg S-P implementation, and the accuracy of regulatory disclosures.

For Advisers and Fund Managers, the message was clear: Firms should understand their risks, ensure compliance policies reflect actual business practices, maintain documentation supporting key compliance processes, and periodically evaluate whether their programs continue to meet regulatory expectations as their business evolves.

If your Firm is looking for hands-on, customized, and tailored on-going Compliance Services or has not had an SEC Exam for some time and is looking for a Mock Exam, schedule a call with Vigilant to learn more about out Solutions and how we can help.

Contact Us