Wall Street regulator to focus on AI, private assets in corporate exams
XLF•The SEC said its examinations of Wall Street firms in fiscal 2027 will focus on artificial intelligence, private assets and tokenized securities. Priority areas include private funds and private credit.
1. Examination priorities
The SEC said examiners will focus on private funds and private credit in the federal government's 2027 fiscal year, which began October 1. The agency also plans to examine the use of artificial intelligence and other technology that may affect market operations, compliance, fraud prevention and investor protection.
2. Private assets and tokenization
The SEC said examiners will also focus on risks tied to market-structure changes, including tokenization of securities. The announcement comes as the Trump administration has moved to expand access to private assets for retirement savers and retail investors. Critics say investors may not receive expected returns, may not understand fees and may face difficulty pricing or quickly redeeming the assets for cash.
