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At a Glance
- Alternative investments, including private credit and private funds with lock-up for extended periods, complex investments, and products with higher costs will be prioritized.
- The SEC will focus on valuation and conflict-of-interest issues for registered funds utilizing complex strategies and holding less liquid or illiquid investments, including registered closed-end funds.
- Compliance dates for the names rule occur for fund complexes of all sizes during calendar year 2026; and once the applicable compliance date has passed, enforcement of compliance with the names rule will be a priority.
- Cryptocurrencies were a prominent component of last year’s exam priorities list, but there is no reference to crypto assets in the 2026 exam priorities.
On November 17, 2025, the U.S. Securities and Exchange Commission’s (SEC) Division of Examinations released its 2026 exam priorities. With this being the first exam priority release since Paul Atkins took over as chairman of the SEC, there are several notable additions and exclusions that show a transition away from the stated SEC exam priorities over the last couple of years.
The priorities hint at a move away from a regulation by enforcement and towards a collaborative relationship between industry and regulators with a shared goal of investor protections and efficient capital formation. Contrary to prior enforcement approaches, the exam priorities emphasize empowering registrants through exam transparency and publication of risk alerts to help facilitate the strengthening of compliance programs. SEC Chairman Atkins noted, “Examinations are an important component to accomplishing the agency’s mission, but they should not be a ‘gotcha’ exercise.”
Notable Focuses
While not fully exhaustive of all exam priorities, the following are notable focuses for advisers and registered funds in 2026.
Complex/Alternative Products (Advisers)
Alternative investments, including private credit and private funds with lock-up for extended periods, complex investments, and products with higher costs will be prioritized in 2026 exams. We expect exams of advisers offering alternative investment strategies and of closed-end alternative investment registered funds to focus on topics of conflicts of interest, liquidity, valuation, allocation of investment opportunities, fees and investor disclosure, all of which are mentioned at various points throughout the exam priorities.
Mergers & Acquisitions (Advisers)
The SEC will focus on operational and compliance complexities, and potential and actual conflicts of interest arising from business transactions between existing advisory practices.
Business Model-Specific Compliance Programs (Advisers)
The SEC will focus when investment advisers are dealing with products or situations that make specific regulations more relevant. For example, timely and accurate ownership reporting when conducting activist activities. Exams will also focus on compliance practices when advisers change their business model, or are new to advising types of assets, clients or services.
Complex Strategies / Illiquid Holdings (Funds)
The SEC will focus on valuation and conflict-of-interest issues for registered funds utilizing complex strategies and holding less liquid or illiquid investments, including registered closed-end funds.
Names Rule (Funds)
Compliance dates for the names rule occur for fund complexes of all sizes during calendar year 2026; and once the applicable compliance date has passed, enforcement of compliance with the names rule will be a priority.
Notable Exclusions From Focus
The following are notable omissions from the 2026 exam priorities.
Communications
Despite recent enforcement actions regarding off-channel communications and failures to preserve electronic communications, there is no mention that the SEC plans to focus on off-channel communications in 2026. Our expectation is that off-channel communications issues may still arise when there are facts and circumstances that indicate an issue during an exam, but we do not expect it to be a central theme for exams or investigations.
Cryptocurrencies
Cryptocurrencies were a prominent component of last year’s exam priorities list — the 2025 exam priorities had an entire subsection concerned with crypto assets, which commented on the volatility and proliferations of crypto assets; but there is no reference to crypto assets in the 2026 exam priorities.
Persistent Focuses
As in the past, the 2026 exams are also expected to focus on fiduciary duties, fees, conflicts of interest, vulnerable customers, information security and operational resiliency (including cybersecurity and compliance with newly amended Regulation S-P), and advisers and registered funds that have not been examined before.
The SEC’s 2026 Examination Priorities can be found here.
The November 17, 2025, press release can be found here.
