3 Key Compliance Predictions for 2026
January 21, 2026
This year will be one of constant changes. The withdrawal of Gensler-era rule proposals and the flurry of executive orders asking the SEC and DOL to reexamine everything from alternative investments to fiduciary standards to custody, and to proxy advisors, have led to a fluid environment for compliance programs. As you surf these waves of change, here are three key predictions for Compliance Programs in 2026 to help keep you afloat.
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Amended Regulation S-P is THE Priority for Compliance Programs
Despite the expectation of more change, there is one compliance deadline that is not expected to shift: Amended Reg S-P. The compliance deadline for Amended Reg S-P was the one deadline that stayed put in 2025. The new administration postponed many other compliance dates (the AML/CFT Rule, Form SHO, and amended Form PF), but larger firms managing more than $1.5 billion in assets came into compliance with Amended Reg S-P on December 3, 2025. All other firms must comply with the amendments to Reg S-P by June 3, 2026, and the SEC has already announced how initial Amended Reg S-P examinations will be conducted:
- Incident Response Plan – SEC Examiners noted in the first webinar that written policies and procedures would be the first request, with an incident response plan being the most important part.
- Implementation – Once the policies and procedures are reviewed, the SEC exam team will focus on implementation of those policies. Is customer information being handled according to your procedures? Has your firm mapped data, identified risks, addressed data protection, managed vendors, and responded to breaches appropriately?
- Vendor Management – Oversight of third parties is another key part of Amended Reg S-P compliance. Ensuring that the firm receives the required 72-hour notice after a breach at a service provider continues to be highlighted as both an expectation of the SEC as well as a challenge for advisers.
- Recordkeeping – In addition to copies of written policies and procedures, advisers should also expect examiner requests for documentation of any detected unauthorized access, any investigations and determination of whether notice to customers was necessary, and copies of any notices sent.
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More to Come for Alternative Investments and Cryptocurrency
Crypto assets, tokenization, and alternative investments will continue to be buzzwords in 2026. The new administration has promoted 401(k) access to alternative investments like private equity and crypto assets. Both the SEC and DOL are exploring ways to expand this access. The SEC has created the Crypto Task Force, removed a structural barrier, and granted narrow no-action letter relief in support of both cryptocurrency and tokenization. Meanwhile, the DOL is expected to release a rule proposal clarifying the use of alternative investments and an adviser’s fiduciary duty when selecting such investments. There is investor demand for these investments, and advisers of alternative investments would love to access the trillions of dollars kept in 401(k) accounts. Firms moving quickly in new directions need their compliance programs to move just as fast.
- Crypto Assets – Compliance standards for custody and recordkeeping have always been a challenge for cryptocurrency. Firms looking to recommend crypto assets for managed portfolios must track new regulatory frameworks and review new opportunities against existing procedures and any legacy prohibitions.
- Alts vs. ERISA – The desire to expand 401(k) access to alternative investments will clash with the fiduciary standards of the ERISA. The DOL has been directed to work with the SEC on creating a framework. Similarly, your compliance program and ERISA agreements must adapt to any new guidance.
- Outdated Policies and Procedures – As your business evolves, compliance manuals must be updated with necessary changes to remain effective. Outdated agreements, methods for documenting suitability, and client disclosures around holdings and your fiduciary duties will need thorough review.
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SEC Sticks with Classic Compliance and Investor Harm
SEC activity in 2026 is likely to be anchored around the core areas of compliance and investor harm. Chairman Atkins has expressed his intention for the SEC to get back to the basics of investor protection. In the press release on the 2026 Examination Priorities, he said that examinations should not be a “gotcha exercise.” The examination priorities themselves reflect this return to the core areas of an effective compliance program and push towards transparency for the examined. Be sure you are prepared in these core areas:
- Marketing – The Marketing Rule was the subject of the sole risk alert published in 2025, and under Atkins, the SEC’s Marketing FAQs have been updated not once, but twice. Review your oversight of third-party promotion, examine performance presentations in light of the new guidance, and revise disclosures as necessary. Marketing will remain a priority in 2026.
- Fees and Disclosures – Fees, expenses, and compensation, along with proper disclosure, are often the first places reviewed for investor harm. Enforcement actions in 2026 are likely to follow the recent pattern of hefty penalties when fees or fraud are involved, and lesser penalties where there are compliance failures but no quantifiable harm to clients, such as non-fraud custody failures or marketing and recordkeeping.
- Gap Analysis – With rulemaking slowing down, use 2026 as a time to improve any gaps in your compliance program. Now is the time to catch up on compliance testing, documentation, and your annual review. It is also time to reassess your approach to compliance issues in the absence of regulatory rulemaking. Take AI, for example. The proposed AI Rule has been withdrawn, but your compliance program needs to have adequate monitoring and controls for any use of AI. Likewise, any claims of AI-powered capabilities must be vetted for accuracy and adequately disclosed. Work on your compliance program now before the next wave of changes occupies your time.
Need Help?
If you have questions about strengthening your compliance program, navigating regulatory changes, or preparing for amended Reg S-P, our team of regulatory experts can help. Contact us today if you’re interested in learning more.
