SEC Examination Priorities 2026: What RIAs Must Prepare For

The SEC's Division of Examinations has released its 2026 examination priorities, signaling a significant shift toward technology governance, AI oversight, and enhanced private fund transparency. Investment advisers must act now to prepare for heightened scrutiny in these critical areas.

Overview of 2026 Examination Focus Areas

The SEC's 2026 priorities reflect the agency's evolving focus on emerging risks and investor protection in an increasingly technology-driven investment landscape. This year's priorities emphasize four core themes that will shape examination activity throughout the year.

AI and Technology Governance

The SEC has made clear that artificial intelligence governance will be a primary examination focus in 2026. Examiners will assess whether advisers using AI-powered tools have implemented appropriate oversight frameworks, including:

• Documentation of AI model development, testing, and validation procedures
• Ongoing monitoring and performance assessment of algorithmic recommendations
• Clear disclosure to clients about the use and limitations of AI in investment processes
• Human oversight mechanisms and escalation procedures for AI-driven decisions
• Third-party vendor due diligence for AI technology providers

Cybersecurity Rule Compliance

With the cybersecurity disclosure requirements now in full effect, examiners will conduct thorough assessments of adviser cybersecurity programs. Key areas of focus include:

• Written cybersecurity policies and procedures tailored to the adviser's risk profile
• Incident detection, response, and reporting capabilities
• Vendor risk management and third-party access controls
• Employee training and awareness programs
• Business continuity and disaster recovery planning

Private Fund Adviser Scrutiny

Private fund advisers face enhanced examination focus on fee structures and investor communications. The SEC has signaled particular attention to:

• Accuracy and completeness of fee and expense disclosures
• Allocation methodologies for shared expenses across funds
• Side letter arrangements and preferential treatment disclosure
• Quarterly statement accuracy and timeliness
• Conflicts arising from adviser-affiliated service providers

Marketing Rule Enforcement Continues

The SEC's focus on Marketing Rule compliance remains strong in 2026. Examiners will continue to scrutinize:

• Testimonial and endorsement arrangements and disclosures
• Performance advertising substantiation and presentation
• Social media content and influencer relationships
• Third-party rating disclosure requirements

Preparation Recommendations

Investment advisers should take immediate action to prepare for potential examinations:

1. Conduct a compliance gap analysis against the 2026 priorities to identify weaknesses
2. Update policies and procedures to address AI governance and cybersecurity requirements
3. Document, document, document — ensure all compliance decisions are thoroughly recorded
4. Test your incident response capabilities through tabletop exercises
5. Review marketing materials for compliance with the Marketing Rule
6. Assess third-party vendor relationships and due diligence documentation