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SEC 2027 Exam Priorities Put Private Credit, BDCs, Interval Funds in Focus
AltsWire reports that the SEC’s examination division will emphasize private credit and other illiquid investments in its fiscal 2027 reviews. The priorities, released October 23, call for scrutiny of advisers’ product recommendations, client liquidity needs, costs and conflicts, including recommendations involving private funds and business development companies.
For registered funds holding less liquid assets, examiners will focus on valuation, redemptions and risk disclosures. Broker-dealer reviews will also address Regulation Best Interest when recommending private placements and other complex products. The priorities express division staff’s examination plans; they create no additional legal obligations and may change as market risks evolve.
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