This year’s list represents more continuity than rupture with the 2022 list. Nonetheless, the SEC in 2023 is highlighting as a top priority the new marketing rule, which took effect for registered investment advisers (RIAs) in November 2022. As in past years, the Division expects to focus on RIAs to private funds, following a wide-ranging set of comprehensive new rules for private funds proposed last February, as well as adherence to applicable fiduciary duties. Priorities also include two perennial hot topics – environmental, social, and governance (ESG) standards and information security (especially cybersecurity). The SEC also last year proposed new rules for cybersecurity and ESG that will, upon finalization, impact private funds.
Notably, the priorities list is the first to be released under the Division’s new director, Richard R. Best, who was appointed in May 2022 and had served in an acting capacity since March 2022, previously serving as director of the SEC’s New York regional office. Under its new leadership, the Division elucidated “four pillars” for its long-standing mission: (i) promote compliance; (ii) prevent fraud; (iii) monitor risk; and (iv) inform policy.
Authored by Madelyn Healy Joseph, Adam Brown, Parik Dasgupta, Henry Kahn, Bryan Ricapito, David Winter, and Kevin Lees.
