U.S. SEC Announces FY 2027 Inspection Priorities, Focusing on Tokenization, Cybersecurity, and Advanced AI Technology Risks

The U.S. Securities and Exchange Commission (SEC) announced its inspection priorities for Fiscal Year 2027, continuing to conduct risk-based examinations of over 34,000 registered entities, focusing on investment advisers, funds, broker-dealers, clearing agencies, and other market participants. The SEC noted that Fiscal Year 2027 will emphasize investment adviser fiduciary duty and conflicts of interest, retail investor protection, private funds and private credit, broker anti-money laundering and trade surveillance, operational resilience, and cybersecurity. Emerging technologies and market infrastructure are also identified as key priorities. In particular, the SEC will monitor the impact of advanced technologies, including "superintelligence," on market operations, compliance, fraud prevention, and investor protection, while concurrently evaluating the risks associated with Treasury clearing reforms, tokenization, and related market structural changes.