SEC Enforcement Trends for Investment Advisers: 2025–2026
The SEC has undergone significant transitions while refocusing enforcement on traditional investor fraud and conduct affecting retail investors and market integrity. This report highlights key developments across enforcement, rulemaking, and examinations, and outlines areas of focus for investment advisers in fiscal year 2026 and beyond.
Key Takeaways
- Investment adviser cases remain a top enforcement priority: Adviser-related matters continue to comprise a significant portion of the SEC’s enforcement docket
- Heightened scrutiny where retail investors may be impacted, including for non-fraud charges: The SEC continues to prioritize cases involving actual or potential harm to retail investors and market integrity
- Impact of staffing and resource constraints on Enforcement and Examinations: Reductions in staff and limited resources are expected to increase the use of data-driven and off-site examinations, with fewer referrals in some areas and a greater focus by Enforcement and Examinations on larger investment advisers
- Evolving examination practices and rulemaking developments deserve close attention: Firms should continue to monitor evolving regulatory expectations, including rule withdrawals and new obligations under Regulation S-P and related frameworks
- Heightened attention to cybersecurity, AI, and crypto-related risks: We expect the SEC to remain focused on cybersecurity, privacy, and operational resiliency, the accuracy of AI-related representations, and compliance risks associated with digital asset activities
The report also highlights key developments following the change in administration, including withdrawn proposed rulemakings affecting investment advisers and the SEC’s continued implementation of Regulation S-P amendments expanding privacy and cybersecurity obligations.
As the SEC refines its regulatory approach, investment advisers should remain vigilant in maintaining strong compliance programs, ensuring accurate disclosures, and managing emerging risks related to cybersecurity, AI, and digital assets—particularly where practices may touch retail investors.
