SEC Division of Examinations Announces 2023 Priorities

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Treliant Takeaway:

Treliant’s Credit Solutions practice comprises former senior financial services risk executives and regulators who combine their extensive experience, qualifications, and know-how to assist financial institutions prepare to meet these heightened SEC expectations. We provide financial institutions consulting support on credit risk management and governance, climate scenario analysis, ESG policy and procedure development, loan workouts, and advice on portfolio risk-mitigation strategies.


The Securities and Exchange Commission’s (SEC) Division of Examinations has released its 2023 supervisory priorities to provide insights into its risk-based approach, including the areas it believes present potential risks to investors and the integrity of the U.S. capital markets. The SEC priorities reflect the changing landscape and associated risks in the securities market and are the product of a risk-based approach to examination selection that balances their resources across a diverse registrant base,

The SEC has identified environmental, social, and governance (ESG)-related advisory services and fund offerings, including whether funds are operating in the manner set forth in their disclosures as a key area. In addition, the SEC will assess whether ESG products are appropriately labeled and whether recommendations of such products for retail investors are made in the investors’ best interests. The SEC will finalize several ESG rules this year that will require publicly traded companies to disclose various types of greenhouse gas emissions, restrict which funds can include ESG-related terms in the fund’s name, and require investment advisers and investment companies to provide greater transparency and disclosures about how ESG factors are considered in investment strategies. The expected timeline for the finalization of the SEC’s ESG-related rules is as follows:

April 2023 – Changes in Climate Disclosures

  • gov | SEC Proposes Rules to Enhance and Standardize Climate-Related Disclosures for Investors

October 2023 – Investment Company Names

  • gov | SEC Proposes Rule Changes to Prevent Misleading or Deceptive Fund Names

October 2023 – Enhanced Disclosures by Certain Investment Advisers and Investment Companies about Environmental, Social, and Governance Investment Practices

  • gov | SEC Proposes to Enhance Disclosures by Certain Investment Advisers and Investment Companies About ESG Investment Practices