On February 7, 2023, the SEC Division of Examinations (Division) released its examination priorities for the 2023 fiscal year (Priorities). The Priorities not only identify private fund advisers as a significant focus area but also single out six types of private funds considered high risk. In addition, advisers must be aware of other focus areas applicable to all registered investment advisers, including marketing; environmental, social and governance investing; electronic communications; and operational resiliency. This second article in our two-part series discusses the creation and use of the Priorities and provides key takeaways for private fund managers from former Division officials. The first article
summarized elements of the Priorities of particular interest to private fund managers. See “Key Compliance Issues for Advisers and Funds Arising From the SEC’s 2022 Exam Priorities (Part One of Two)
” (Jan. 19, 2023).