The long-awaited 2021 examination priorities of the Securities and Exchange Commission (SEC) were released Wednesday, 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. The Division of Examinations (formerly the Office of Compliance Investigations and Examinations, or OCIE) publishes its exam priorities every year “to provide insights into its risk-based approach, including the areas it believes present potential risks to investors and the integrity of the U.S. capital markets,” the SEC said.
