SEC Plans FY27 Scrutiny of AI, Private Assets

The SEC says its examinations of Wall Street firms in fiscal 2027 will prioritize private funds and private credit, artificial intelligence and other technology, and risks tied to market-structure changes such as tokenized securities. Examiners will scrutinize private-fund fees, expenses and valuations, amid concerns that these products can be difficult to price, costly and hard for investors to redeem, particularly as the Trump administration seeks to expand retail and retirement savers’ access to private assets. The agency also plans to assess how firms use AI in areas including trading, compliance and fraud prevention, and how they prepare for AI-related cyberattacks.