SEC sets sights on RIA M&A and alts as 2026 exam priorities
Securities and Exchange Commission (SEC) examiners will focus on RIAs that have merged with other practices, the federal agency said in a document outlining its exam priorities for the current fiscal year that runs through next September.
The agency’s decision comes as RIA M&A has reached record annual volumes during the current calendar year, largely driven by private equity investment. As part of its broader goal of enforcing adherence to fiduciary standards, the SEC said in the document that M&A could create operational complexities and new conflicts of interest.
The SEC released the annual document about a week after the reopening of the government. The agency was operating in a limited capacity during the shutdown, which halted the process of new RIA registrations. Meanwhile, roughly 15% of the SEC’s staff has also left the agency this year amid the Trump administration’s efforts to cull the size of the federal government.
When it comes to M&A specifically, advisors face considerations like the terms of existing client contracts and need to fully disclose conflicts related to a transaction, said Lori Weston, head of compliance at consultancy STP Investment Services. She added that more firms may consider merging as the SEC weighs lifting its $100m registration threshold.
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