• SEC’s 2024 compliance priorities for advisors focus on conflicts of interest, marketing materials, and compensation arrangements
  • Notably absent from the priorities is any mention of how advisors handle ESG investments
  • SEC is currently working on rulemakings related to ESG and climate disclosures
  • Highlighted priorities include fiduciary standards, compensation structures, handling of complex investments, compliance with the Marketing Rule, Reg BI, and Form CRS
  • SEC Chairman Gary Gensler emphasizes the importance of the Division of Examinations’ efforts in protecting investors and facilitating capital formation

Factuality Level: 7
Justification:

Noise Level: 7
Justification:

Financial Relevance: Yes
Financial Markets Impacted: The news article pertains to the Securities and Exchange Commission (SEC) and their priorities for examining advisors and registered entities. It provides information that may impact financial markets and companies in the financial industry.

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The news article discusses the SEC’s priorities for examining advisors and registered entities, focusing on areas such as conflicts of interest, marketing practices, compensation arrangements, and compliance with regulations. While there is no mention of an extreme event or its impact, the information provided is relevant to financial markets and companies in the financial industry.

Public Companies:
Private Companies: undefined
Key People: Joshua Broaded (Head of Global Regulatory Compliance at ACA Group), Gary Gensler (SEC Chairman)

The Securities and Exchange Commission (SEC) has released its 2024 compliance priorities for advisors, outlining areas of focus for examinations. Notably absent from the priorities is any mention of how advisors handle investments tied to environmental, social, or corporate governance factors (ESG). However, this does not mean that ESG has faded from regulators’ attention. The SEC is currently working on rulemakings related to ESG and climate disclosures. The highlighted priorities include evaluating fiduciary standards, examining compensation structures, assessing the handling of complex investments, ensuring compliance with the Marketing Rule, monitoring compliance with Regulation Best Interest (Reg BI), and evaluating the customer relationship summary form (Form CRS). SEC Chairman Gary Gensler emphasizes the importance of the Division of Examinations’ efforts in protecting investors and facilitating capital formation.