US SEC announces 2027 examination priorities and issues ESG report

The US Securities and Exchange Commission (SEC) has announced its examination priorities for fiscal year 2027. The agency plans to focus on compliance frameworks and emerging technologies across more than 34,000 registered entities, including investment advisers, broker-dealers, and clearing agencies. Key areas of scrutiny include fiduciary duties, conflicts of interest, cybersecurity, and the protection of client information. The SEC also intends to examine risks associated with private credit, highly complex financial products, and advanced technologies, including artificial intelligence.

In a separate development, the SEC released a 23-page investigative report regarding Climate Action 100+ (CA100+), an investor coalition involving major asset managers such as BlackRock and State Street. While the SEC declined to take legal action or find illegal activity—noting a lack of evidence for organized voting coordination—it expressed “serious concerns” regarding the group's activities. The report detailed how pressure campaigns, including media criticism and asset withdrawals by clients like Japan's Government Pension Investment Fund (GPIF), influenced asset managers to join the coalition to address climate change concerns.