Investing November 11, 2026 0 Comments

Unlocking the SEC’s 2027 Exam Priorities: What Every Investor and Entrepreneur Must Know Before It’s Too Late

What if I told you that artificial intelligence just got itself a shiny new job title in Washington? Yep, from now on—and by presidential decree—AI is officially “super intelligence,” or SI, and it’s stepping into the SEC’s courtroom armed with digital muscle. Imagine examiners showing up not only with their sharp eyes but also with super-intelligent tools that might uncover issues even the savviest humans could miss. This isn’t your usual regulatory drill; it’s a game-changer for investment advisers, broker-dealers, and anyone playing in the financial sandbox. From clawing back into private fund fees to battling the sinister rise of deepfakes, this year’s SEC examination priorities are packed with punches you’ll want to watch closely. So, ready to find out how the SEC’s new super-intelligent gaze could shake up your compliance playbook before it shakes you? Dive in and let’s unpack the six critical priorities set to redefine fiscal 2027. LEARN MORE

AI just got a promotion in Washington, whether it needed one or not. A September 29 executive order directs federal agencies to refer to what is commonly known as “artificial intelligence” as “super intelligence,” or “SI,” and the SEC’s Division of Examinations uses the term throughout the fiscal 2027 examination priorities it released in late October. With no apologies to Sports Illustrated, the Division says it plans to put SI tools in its own examinations.

The Division examines investment advisers, broker-dealers, exchanges and other regulated entities—and can refer its findings to the Division of Enforcement. The SEC has historically pursued enforcement actions in areas the Division of Examinations highlights. Here are six to watch in the fiscal year that began October 1.

Examiners are bringing their own AI

The Division’s AI plans might be more significant than anything else on the priorities list. Even with the stated priorities unchanged, examiners equipped with these tools “may simply find more.” However, the SEC’s adoption of these tools does not mean examination participants are free to use AI application without restrictions. The new Exam Handbook says staff “does not consent” to AI notetaking tools in meetings, and that AI –in general–should supplement, rather than replace, examiner judgment.

Private fund fees are back on the list

The 2027 priorities expressly call out private fund fee and expense calculations at both the fund and investment levels, a topic Proskauer noted was missing from the fiscal 2026 list. Examiners will also look at the “reasonableness” of advisers’ valuation processes and at broker-dealer supervision of payments to unregistered people who may be acting as finders.

Retail access to private credit gets a closer look

The Trump administration has moved to open private assets to retirement savers and retail investors, Reuters reports. Examiners will focus on advisers recommending illiquid products, and registered fund exams will expressly cover private credit valuation, redemption, and disclosure. The attention comes as private credit managers have faced a wave of redemption requests from investors trying to cash out, Bloomberg reports.

Deepfakes are now an exam topic

You get a voicemail from your CEO authorizing an urgent wire. Is it real? Examiners will test whether firms are ready for AI-generated phishing and for deepfake voice and video used in social engineering attacks. The law firm MoFo points out the change in emphasis: last year’s priorities emphasized firms’ representations about their use of AI, while this year’s place greater emphasis on how firms protect themselves against AI-enabled threats.

Regulation S-P moves from preparation to testing

In 2024, the SEC added incident response and breach notification requirements to Regulation S-P, its customer-information rule, with compliance dates in December 2025 and June 2026. MoFo expects examiners to test whether those programs actually work. The same day the priorities came out, the SEC settled charges against an adviser that failed to implement its identity theft prevention program under the SEC’s related identity theft prevention rule, Regulation S-ID, with a $175,000 penalty.

Activist advisers should note the timing

The 2027 document specifically mentions advisers with “activist engagement practices.” The reference comes shortly after the SEC’s October 7 report of investigation under Exchange Act Section 21(a) involving certain members of Climate Action 100+, the climate coalition, which raised questions about when coordinated shareholder engagement may trigger beneficial ownership reporting obligations. That report, the agency’s first of its kind in eight years, warned that coordinated investor engagement can create a “group” that triggers beneficial ownership reporting, and that trying to influence a specific company can jeopardize an adviser’s eligibility for the short-form Schedule 13G.

Super intelligence or not, the SEC’s message from the Division is familiar: examiners want to see that firms’ compliance programs work in practice, not just on paper. For investment advisers, broker-dealers and other registrants, that means taking a fresh look at controls around private fund fees, illiquid investments, AI-related cybersecurity threats, customer information and activist engagement. The 2027 priorities offer a useful roadmap for identifying potential weaknesses before an examination begins. After all, the best time to find a problem in your compliance program is before the SEC finds it for you.

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