SEC Examination Priorities for 2022

SEC Examination Priorities for 2022

The SEC recently released its examination priorities for 2022, focusing on these major risk areas:

  • Private funds
  • Environmental, social, and governance (ESG) investing
  • Retail investor protections
  • Information security and operational resiliency
  • Emerging technologies and crypto assets

We commented last year on the SEC’s increased focus on ESG investing, so no surprises there. Going forward, we expect to see continued focus on the compliance implications of ESG investing, including the implementation of policies and procedures designed to prevent violations of the federal securities laws concerning ESG-related disclosures and processes.

Speaking of the environment, the SEC notes that, as part of its focus on information security and operational resiliency, it “will again be reviewing registrants’ business continuity and disaster recovery plans, with particular focus on the impact of climate risk and substantial disruptions to normal business operations.” This comes on the heels of the SEC’s major rule proposal pertaining to climate-related risk disclosure.

In our compliance newsletters and blog posts, we’ve covered other important topics highlighted in the SEC’s 2022 exam priorities, including RIA and broker-dealer obligations to act in the best interests of investors and to manage potential conflicts of interest.

At Joot, we’re particularly interested in the SEC’s focus on emerging technologies and digital assets, including cryptocurrencies. We recently covered these trending topics in our recent crypto blog post series that introduces the risks related to crypto investing, highlights major areas to consider when registering digital asset funds, analyzes the complex regulatory landscape of cryptocurrencies and other digital assets, and examines tokenized asset funds. Stay tuned for more updates about the quickly evolving world of emerging tech and digital assets.

For more information on any of the topics covered in the SEC’s 2022 exam priorities, check out the full report. And get in touch with any questions you have. As always, our experts at Joot are here to help.