SEC Sets 2027 Examination Priorities With Focus on AML and Cybersecurity

The U.S. Securities and Exchange Commission (SEC) announced its examination priorities for fiscal year 2027, outlining the areas its examiners will focus in the year on to improve compliance, prevent fraud, and protect investors.

Top priorities include investment advisers, broker-dealers, investment funds, and other financial market participants. The SEC said its examination programme will respond to changing risks, new financial products, and developments in technology.

What are the main priorities for 2027?

1. Stronger anti-money laundering controls

The SEC will focus on examining broker-dealers’ anti-money laundering (AML) programmes, including their financial crime controls, trading practices, and supervision. Firms should ensure their controls comply with their business activities and risks.

For compliance teams, this means checking that AML procedures are practically followed, suspicious activity is timely and proactively escalated, and monitoring systems support the detection of unusual transactions.

2. Cybersecurity and customer information protection

The SEC will continue to focus on cybersecurity, operational resilience, and the protection of customer information. Firms should review how they protect sensitive data, respond to cyber incidents, and keep essential services running during disruptions.

3. New technology and AI

The regulator will examine risks linked to emerging technologies, including advanced AI systems and other tools, including the use of shadow AI that may affect financial markets, compliance, and fraud prevention. Firms should ensure technology-related claims are accurate and that systems are properly managed.

4. Investment advice and conflicts of interest

The SEC will review whether investment advisers act in their clients’ best interests, disclose important conflicts, and maintain effective compliance programmes. It will also examine risks involving complex investments, private funds, and private credit.

5. Changes in financial market infrastructure

The priorities also include developments such as Treasury clearing reforms and tokenisation. Firms should assess how changes in the way financial products are traded, recorded, and settled may affect their controls and operations. The SEC stressed that these priorities are not a complete list of everything examiners may review. Its examination teams can adjust their focus as new risks, products, and market developments emerge.

What does this mean for financial firms?

The announcement gives firms an indication of the areas likely to receive closer attention during the SEC’s fiscal year 2027 examination programme. It does not introduce new rules by itself, but it signals where the regulator expects firms to maintain effective controls and be prepared to demonstrate compliance.

Implications for Compliance Teams

• Review AML programmes: Check whether controls reflect the firm’s activities, customer risks, and exposure to suspicious trading or transactions.
• Test monitoring and escalation: Ensure alerts are investigated, decisions are documented, and concerns reach the right teams.
• Strengthen cybersecurity: Review protection of customer information, incident response plans, and business continuity arrangements.
• Assess AI and technology risks: Understand how tools are used, who is responsible for them, and how their performance is checked.
• Prepare for examinations: Keep policies, testing results, training records, and evidence of corrective actions organised and up to date.

The main message is that firms should not treat compliance as a paper exercise. Their controls need to work in practice, reflect current risks, and be supported by clear accountability.