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A Look at SEC Examination Priorities: Standards of Conduct and ESG

Jul 10, 2023

For a better understanding of the SEC’s examination priorities for Standards of Conduct and ESG investing, listen to this quick video by TaNeka Ray with EisnerAmper Compliance Desk. This video series covers SEC regulatory and compliance insights to help you navigate a changing regulatory landscape. (Video length is 2 minutes 32 seconds.)


TaNeka Ray:

Hello. Welcome back to EisnerAmper's SEC Readiness Video Series. My name is TaNeka Ray, and I work in the Regulatory Compliance Group here at EisnerAmper. Thank you for joining me.

Today I will continue A Look at the SEC Examination Priorities as it relates to advisors. For those of you who are just tuning in, in the previous video, I covered a look at SEC Examination Priorities as it relates to advisors, where I focus on the Amended Marketing Rule and RIAs to Private Funds. I encourage you to check it out if you haven't already. Now, let's get started.

The SEC has identified Standards of Conduct as an exam priority, which means during examinations the SEC will assess whether advisors are acting in compliance with their fiduciary duty to act in the best interests of investors. Advisors can ensure they're satisfying their fiduciary duty by making sure:

One, disclosures to investors contain all material facts relating to conflicts of interest.

Two, that they're considering all factors of an investor's investment profile before recommending a suitable investment.

And three, by making sure conflicts of interest disclosures contain enough information for investors to make an informed decision.

The next focus area the SEC has identified is ESG investing, which includes advisory services and fund offerings. During examinations, the SEC will assess:

One, whether the ESG policy is being properly implemented and whether the advisor is operating in compliance with what is stated in the compliance manual and in the disclosure documents.

Two, that ESG products are appropriately labeled to inform investors how ESGs is used in the investment process and how the assets are selected.

And three, that recommendations of ESG products are made in the best interest of investors.

If you'd like more information regarding ESG investing, feel free to contact me as we have an ESG advisory team that can answer your questions and give you more insights.

Well, that's it for now. Join me in the next video where I will cover Information Security and Operational Resilience, and Crypto Assets and Emerging Financial Technology. Again, my name is TaNeka Ray with EisnerAmper. Don't forget to connect with me on LinkedIn. Thank you for watching.


The information provided in this video is not to be construed as an interpretation of the regulatory requirements, application of the regulations to a specific business, or legal advice.

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TaNeka Ray

TaNeka Ray is a Senior Manager in the firm's Global Compliance & Regulatory Solutions Group & and has over 5 years of experience.

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