The long-awaited 2021 examination priorities of the Securities and Exchange Commission (SEC) were released March 3rd, providing investment firms and broker-dealers with a breakdown of the issues the Division of Examinations will focus on this year.
The influence of President Joe Biden’s political agenda is evident in a number of the priorities, including climate- and ESG-related risks, fiduciary duties under Regulation Best Interest (Reg BI), and risks related to emerging technologies.
Foreside’s Les Abromovitz, Senior Director shared with ComplianceWeek that The Division’s 2020 priorities did not mention climate-related risks, although it did mention ESG-related risks.
Les said last year’s release did state that examiners were particularly interested in the accuracy and adequacy of disclosures provided by registered investment advisors (RIAs) “offering clients new types or emerging investment strategies, such as strategies focused on sustainable and responsible investing, which incorporate environmental, social, and governance (ESG) criteria
Click here to read the full article and learn more about what The Division will be focusing on for specific exam priorities for investment advisors and investment firms and for broker-dealers.