SEC Office of the Investor Advocate Releases FY 2026 Objectives
SEC Releases
Introduction
The SEC’s Office of Investor Advocate (OIAD) was designed to assist retail investors with resolving any significant problems that may occur with the SEC or any SROs.
On June 25th, the OIAD released its objectives for Fiscal Year (FY) 2026. These objectives were the result of direct engagement with investors, investor research/testing, and legal research/analysis. The OIAD also consults with other important stakeholders and commission staff.
The objectives for 2026 focus on SEC policies and SRO filings, Investor Engagement, and Investor Research.
We have provided a summary of the more relevant objectives for our audience.
OIAD Objectives for FY 2026
- SEC Policies and SRO Filings
- Enhancing the Accessibility of Disclosures for Investors
- There are concerns that the increasing length and complexity of disclosures under current Rules may be a hinderance to the understanding of retail investors.
- OIAD will advocate ways for retail investors to better access the most important information in disclosures including:
- Making disclosures more user-friendly and comprehensible.
- Removing repetitive disclosure.
- Highlighting or emphasizing key information.
- Disclosure and Investor Testing
- The OIAD will encourage investor research and testing on the impact of both existing and proposed disclosures to retail investors.
- The goal of such research would be to increase retail investor understanding while potentially avoiding costly changes or additions to disclosures.
- Research would also quantify whether mandated disclosures provide material information to investors at the proper point in their decision-making process.
- The OIAD will encourage investor research and testing on the impact of both existing and proposed disclosures to retail investors.
- Private Market Investments in Retirement Accounts
- OIAD will explore the inclusion of alternative investments, such as Private Equity and Private Credit, in Retirement Savings Plans.
- Prior reports have noted that private markets are becoming an important avenue for investors seeking greater access to investment opportunities.
- However, OIAD also acknowledges the significant risks in these investments including:
- Reduced/unreliable disclosures.
- Limited liquidity.
- Greater risk of fraud/investment loss.
- Evaluating the Potential Impact of SRO Rule Proposals on Investors
- The OIAD will continue to evaluate the SEC’s oversight over SRO’s with awareness of the conflict of interest in that relationship.
- The proposed Rules by SROs on investors will be evaluated, and current Rules will be assessed for changes that could benefit investors.
- Enhancing the Accessibility of Disclosures for Investors
- Interagency Securities Council
- A joint taskforce created to include federal, state, and local regulatory and law enforcement professionals.
- The council meets quarterly to discuss scams, trends, frauds, and mitigation strategies.
- The council should strengthen the cohesion between multiple agencies to protect investors and provide insights and guidance across the industry.
- The council is chaired by the Director of the Division of Enforcement.
Vigilant’s Conclusion
The objectives for 2026 provide continued optimism that the SEC’s on-going regulatory requirements will be based off objective and quantifiable benefits to investors while also considering the costs to the industry. However, it is worth noting that investor protection is a major theme in most SEC announcements.
Firms need to continue ensuring that their compliance programs align with SEC regulations and avoid any potential investor harm. Reach out to Vigilant today to discuss any questions you may have and learn more about how we can help.