The Securities and Exchange Commission (SEC) regularly updates its examination priorities for broker-dealers to ensure compliance with evolving regulations. For 2025, the SEC will focus on several key areas to protect investors and maintain market integrity. Here’s what broker-dealers need to know about the upcoming SEC exam priorities.
Key SEC Exam Priorities for 2025
1. Regulation Best Interest (Reg BI) – The SEC continues to prioritize ensuring that broker-dealers act in the best interest of their clients, particularly for retail investors and those nearing retirement. This will include scrutinizing high-risk products such as crypto assets and alternative investments.
2. Form CRS Compliance – Broker-dealers must provide clear and concise disclosures to clients through Form CRS, detailing their services, fees, and conflicts of interest. The SEC will closely examine whether broker-dealers are complying with the filing and delivery requirements for Form CRS.
3. Financial Responsibility and Liquidity Management – Ensuring financial resilience remains a top priority. The SEC will examine broker-dealers’ financial controls, including net capital and liquidity management, especially when third-party service providers are involved.
4. Trading Practices and Market Conduct – The SEC will focus on issues like pre-IPO trading, private shares in secondary markets, and the role of retail platforms. Ensuring accurate pricing and the elimination of conflicts of interest will be a significant concern for 2025.
5. Emerging Risks & Technologies – The SEC’s exam priorities reflect the importance of staying ahead of new risks:
- Cybersecurity: Ensuring firms protect client data and are prepared to handle disruptions.
- AI and Digital Tools: Reviewing how broker-dealers use artificial intelligence and algorithms in making recommendations.
- Crypto Assets: Examining the conduct standards, disclosure, and security measures for crypto products.
FNEX: A Solution for Broker-Dealer Compliance in 2025
As regulatory scrutiny increases, financial professionals need a trusted partner to help navigate the evolving landscape. FNEX offers a compliant, streamlined solution to help stay ahead of the SEC’s priorities.
- Regulatory Filings: FNEX handles all necessary filings and renewals to ensure compliance with SEC and FINRA regulations.
- Cybersecurity Measures: FNEX implements robust security practices to protect client data and reduce the risk of cyberattacks.
- Alternative Investment Experience: FNEX has robust experience with Alternative Investments due diligence and investor approvals to ensure compliance with Reg BI.
Partnering with FNEX allows financial professionals to focus on growing their business while we manage the complexities of regulatory compliance.
