Introduction: Why SEC’s Examination Priorities Matter Globally
The U.S. Securities and Exchange Commission (SEC) recently released its FY 2025 Examination Priorities, outlining the key focus areas where it intends to allocate its enforcement and supervisory resources over the coming year. These priorities serve as a critical guide for registered investment advisers (RIAs), broker-dealers, and other regulated financial entities operating within or in connection with the U.S. financial markets. For Indian businesses—particularly those with international clients, offshore advisory arms, or Global Capability Centers (GCCs)—this development holds strategic importance. As global compliance standards continue to converge, aligning with the SEC’s evolving framework is essential not only for risk mitigation but also for building investor trust and operational resilience. At KNM, we offer specialized Regulatory Compliance Advisory services that help organizations understand, adapt, and thrive amid complex international regulatory environments, ensuring audit-readiness and proactive governance alignment.
Key Focus Areas in FY 2025: A Regulatory Shift You Shouldn’t Ignore
The FY 2025 examination roadmap zeroes in on several high-priority areas including cybersecurity and operational resilience, retail investor protection, environmental, social, and governance (ESG) disclosures, anti-money laundering (AML) compliance, and fee transparency and marketing practices. These focal points mirror several critical risk domains that KNM routinely addresses through its integrated Risk & Assurance and Management Consulting solutions. For example, in response to rising threats, the SEC will intensify its evaluation of cybersecurity protocols and incident response plans. At KNM, we assist clients in conducting operational risk assessments, IT audits, and governance audits, ensuring that data security policies align with international best practices. Another major area of interest is the fiduciary responsibility of advisers when providing investment recommendations—especially under Regulation Best Interest (Reg BI). KNM helps clients develop documentation, internal controls, and conflict-of-interest management systems that meet these expectations while aligning with local and cross-border compliance frameworks like those of the MCA, SEBI, and RBI.
| SEC Priority Area | Focus of Examination | KNM India’s Advisory Support |
| Cybersecurity & Operational Resilience | Incident response plans, data privacy policies, vendor risk management | Risk audits, IT control assessments, data protection advisory |
| Retail Investor Protection & Reg BI | Fiduciary duties, disclosures, suitability of advice | Compliance documentation, policy creation, conflict-of-interest management |
| ESG Disclosures | Accuracy in environmental and sustainability reporting | ESG assurance, greenwashing risk assessment, reporting frameworks |
| Anti-Money Laundering (AML) | Customer due diligence, suspicious activity reporting, risk scoring | AML compliance frameworks, internal controls, audit support |
| Marketing & Fee Disclosures | Fee transparency, advertising claims, return performance reporting | Financial disclosure validation, investor communication audits |
ESG and AML Under the Microscope: Implications for Compliance Strategy
Environmental claims and ESG disclosures are also under heightened scrutiny, with the SEC aiming to curtail greenwashing and misrepresentation of ESG strategies. KNM supports businesses in developing robust sustainability reporting practices that stand up to both investor and regulatory evaluations. Additionally, AML continues to be a priority across jurisdictions. The SEC’s enhanced focus on transaction monitoring, KYC/AML programs, and suspicious activity reporting adds another layer of regulatory complexity. KNM’s cross-border experience in Regulatory Compliance Advisory enables us to assist clients in designing end-to-end AML frameworks tailored to both Indian and U.S. requirements. The SEC is also examining fee structures and adviser marketing more rigorously. This includes disclosures, actual versus advertised returns, and compensation arrangements—all areas where KNM’s advisory team ensures accurate, transparent, and compliant financial communication.
For Indian Firms with U.S. Exposure: Are You Prepared?
For Indian firms expanding into the U.S. market or servicing U.S.-based clients, the implications of these priorities are far-reaching. Companies setting up entities under FEMA regulations, investing through inbound or outbound structures, or participating in mergers and acquisitions with U.S.-registered entities must evaluate whether their internal policies and controls meet the heightened standards. KNM’s ability to offer Virtual CFO services, combined with regulatory insight and financial reporting advisory, positions us uniquely to serve as a long-term compliance and growth partner. We bring together regulatory know-how, financial discipline, and operational strategy to bridge the compliance gaps between Indian and international standards.
Conclusion
In an era where compliance is no longer reactive but strategic, the SEC’s FY 2025 Examination Priorities underscore the importance of a forward-looking approach to governance. Whether you’re a regulated adviser, a global investor, or a growing Indian firm eyeing cross-border expansion, aligning with these evolving frameworks is key to sustainable success. At KNM India, we combine domain expertise in Regulatory Compliance Advisory, deep capabilities in Risk & Assurance, and proven experience in Management Consulting to deliver integrated compliance solutions that help clients navigate the changing regulatory landscape with confidence. As the business environment grows more complex, we remain committed to supporting our clients through every phase of the compliance lifecycle—ensuring transparency, trust, and long-term value creation.
