The Securities and Exchange Commission (SEC) has announced its 2025 examination priorities for registered investment advisers and investment companies, broker-dealers, and other registered entities that are subject to inspection by the commission’s Division of Examinations (EXAMS). Among the new areas that will see more scrutiny are illiquid or hard-to-value assets, especially when valuation is used as a basis to calculate management and performance fees. Also, artificial intelligence is on the agency’s radar, and it will examine the use of AI throughout the adviser’s operations investment management, trading, compliance, and/or marketing processes. A full copy of the SEC’s Fiscal Year 2025 Examination Priorities is available if you click here.
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