Developments in SEC and FINRA Enforcement and Exams for Investment Advisers and Broker-Dealers: 2024–2025
February 2025
The US Securities and Exchange Commission brought a number of significant enforcement proceedings against investment advisers and broker-dealers in FY 2024 and during the first quarter of FY 2025. If history serves as a guide, we do not expect the new administration to pay less attention to these firms in the coming year. We do, however, anticipate that the SEC, under new leadership, will recommit its focus on fraudulent conduct and trading abuses, especially as it relates to retail investors. This emphasis will have specific implications for investment advisers and broker-dealers. We expect the Financial Industry Regulatory Authority to similarly remain active, particularly with respect to the focus on fraudulent conduct, retail investors, and Reg BI. FINRA has also indicated that it is taking steps to increase efficiency, so we may see enforcement matters move with more alacrity.