SEC Targets Investment Advisers, Broker‑Dealers, and Cybersecurity in FY 2027 Priorities
The SEC’s FY 2027 examination priorities highlight intensified scrutiny of investment advisers, broker‑dealers and cybersecurity, urging firms to tighten compliance before the year begins.
In a February‑style release that follows its FY 2026 priorities, the SEC’s Division of Examinations outlined its focus for the 2027 fiscal year. Key exam themes include stricter enforcement of fiduciary duties for registered investment advisers, deeper reviews of comments on complex or illiquid products, and heightened scrutiny of investor‑company fee practices. Broker‑dealers will face tighter checks on Net Capital Rule compliance, Reg BI sales‑practices, and AML programs, especially those with cross‑border activities and foreign omnibus accounts. Cybersecurity will become a cross‑cutting priority, with the Division targeting SI‑related phishing, deep‑fake social engineering, and ransomware response protocols under Reg SC‑I and Regulation S‑P. Firms that have recently expanded via mergers or altered their business models are advised to benchmark their compliance frameworks now, test AML procedures against specific risk profiles, and update cybersecurity policies to address SI threats. Failure to address these priorities early could lead to enforcement referrals, civil penalties, or even criminal exposure.