The SEC’s 2026 Compliance Outreach Program—held through regional seminars in Atlanta and New York—provided investment advisers with an early look at the examination themes and compliance expectations likely to shape exams over the coming year. While these sessions do not establish new regulatory requirements, they offer valuable insight into how Division of Examinations staff evaluate firms during examinations and where they continue to identify deficiencies.
Several consistent messages emerged throughout this year’s program: compliance programs must be tailored to the firm’s actual business, disclosures must accurately reflect day-to-day operations, and firms should be prepared to demonstrate, not just describe, how their compliance programs operate in practice.
Here are the most important takeaways for advisers.
1. Generic Compliance Programs Continue to Fall Short
One of the strongest themes throughout the outreach program was that firms should avoid “off-the-shelf” compliance manuals. Instead, policies and procedures should reflect the firm’s specific business model, clients, products, investment strategies and operational risks. SEC staff also emphasized the importance of regularly testing compliance controls, documenting exceptions and remediation efforts, as well as updating policies as the business evolves.
Key takeaway for advisers: Your annual review should be more than a checklist exercise. Firms should periodically assess whether their written policies accurately reflect current operations and whether employees are consistently following them.
2. Fiduciary Obligations Remain the Foundation of SEC Exams
The outreach program reinforced that fiduciary duty continues to underpin many examination findings. Staff discussed due diligence supporting investment recommendations, best execution, conflicts of interest, compensation arrangements and product suitability as areas where advisers should be able to demonstrate thoughtful decision-making and appropriate documentation.
Rather than focusing solely on technical rule compliance, examiners continue to evaluate whether firms are acting in clients’ best interests and can support that conclusion with evidence.
Key takeaway for advisers: Be prepared to demonstrate not only what decisions were made, but why they were appropriate for clients.
3. Examiners Continue to Scrutinize Conflicts and Disclosure Practices
Conflicts of interest remain a significant examination focus. Staff discussed affiliate relationships, compensation structures, revenue-sharing arrangements, fee calculations and valuation-related conflicts, emphasizing that firms should actively identify and evaluate conflicts as their businesses evolve.
The SEC also reiterated that inconsistencies between Form ADV, marketing materials, offering documents, policies and actual practices often raise broader compliance concerns.
Key takeaway for advisers: Review disclosures from the perspective of an examiner. If your written disclosures, internal policies and day-to-day practices don’t align, that disconnect is likely to attract attention.
4. Private Fund Advisers Should Expect Continued Focus on Core Operational Practices
For private fund advisers, the outreach sessions highlighted ongoing examination attention around fee and expense allocations, valuation methodologies, side letter administration, investment allocations, performance fee calculations and newer practices such as NAV financing facilities and interfund lending.
Across these topics, staff consistently emphasized whether firms’ actual practices match governing documents and investor disclosures.
Key takeaway for advisers: Documentation matters. Firms should ensure that operational practices are consistently supported by fund documents, investor communications and internal controls.
5. Cybersecurity Has Become an Operational Examination
Cybersecurity discussions extended well beyond written policies. SEC staff described examinations that assess governance, access controls, vulnerability management, incident response, vendor oversight, disaster recovery and employee training. Staff also noted that exam teams increasingly interview technology personnel, not just compliance staff, to evaluate how cybersecurity controls function in practice.
Alongside cybersecurity, Regulation S-P implementation remains an important examination priority as firms continue implementing the amended requirements governing customer information safeguards and incident response programs.
Key takeaway for advisers: Examiners increasingly expect firms to demonstrate operational cybersecurity, not just maintain written policies.
6. Examination Readiness Starts Long Before the Initial Document Request
SEC staff offered practical guidance for firms preparing for examinations, including maintaining organized books and records, responding promptly to requests, preparing employees for interviews and helping exam teams understand the firm’s business through introductory presentations.
Perhaps most importantly, staff stressed that responsiveness, transparency and prompt remediation often influence how efficiently an examination proceeds.
Key takeaway for advisers: The firms that perform best during examinations are generally the ones that prepare year-round, not after receiving an examination notice.
What This Means for Investment Advisers
The SEC’s 2026 Compliance Outreach Program reinforced a consistent message: examiners are increasingly focused on whether compliance programs work in practice, not whether required policies exist.
Across topics ranging from fiduciary obligations and conflicts of interest to cybersecurity, private funds and Regulation S-P, firms should expect examiners to look for evidence that policies are tailored to their business, implemented consistently and supported by appropriate documentation.
For advisers, now is an ideal time to evaluate whether compliance documentation, disclosures and operational practices are aligned before the next SEC examination.
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