SEC Steps Up Scrutiny
The SEC’s ‘SEC Speaks 2026’ flagged intensified examiner focus on documentation, process transparency, and marketing compliance for advisors. Firms and reps should verify client communications and recorded processes are audit‑ready ahead of more rigorous exams. (jdsupra.com)
SEC Speaks convened March 19–20, 2026 at the Marriott Marquis in Washington, D.C., as the Practising Law Institute’s annual two‑day SEC update. (sec.gov) Chair Paul S. Atkins and Commissioners Hester M. Peirce and Mark T. Uyeda delivered opening remarks and participated in panels with senior staff from Enforcement, Examinations, and the Division of Investment Management. (lexology.com) The SEC’s Division of Examinations published its FY2026 priorities on Nov. 17, 2025, flagging core exam themes such as fiduciary duty, custody, and targeted review of compliance programs for newly registered advisers. (sec.gov) A Division of Examinations Risk Alert dated Dec. 16, 2025 specifically documented staff observations on adviser use of testimonials and third‑party ratings under the Marketing Rule. (sec.gov) The Division of Investment Management updated its Marketing Compliance FAQs on Jan. 15, 2026, adding guidance that addresses use of model fees in net‑performance presentations and when certain SRO final orders are “disqualifying events” under Rule 206(4)‑1. (sec.gov) Recent enforcement outcomes show tangible penalties tied to marketing failures: nine advisers agreed to pay $1.24 million in combined penalties in a Sept. 9, 2024 action. (sec.gov) A Sept. 11, 2023 sweep resulted in nine firms paying $850,000 in combined penalties for hypothetical performance ads, and an April 12, 2024 set of cases produced $200,000 in combined penalties against five advisers. (sec.gov) The Marketing Rule’s books‑and‑records amendments (Rule 204‑2) and the Marketing Rule (Rule 206(4)‑1) require advisers to retain advertisements and related internal working papers, a subject emphasized in the SEC’s final rule and exam guidance. (sec.gov) At SEC Speaks Chair Atkins outlined an “ACT” initiative (Advance, Clarify, Transform) for recalibrating rulemaking, while Enforcement leadership signaled a move toward “impact‑driven” cases that prioritize investor harm over technical violations. (vedder.com)
