As of March 2024, there were approximately 3,400 SEC-registered broker-dealers, with more than 125,000 registered offices, 625,000 registered personnel and $5.5 trillion in assets, according to a risk alert (Risk Alert) issued by the SEC Division of Examinations (Division). The Risk Alert describes the Division’s approach to broker-dealer examinations, including how it selects firms for examination; how it determines the scope of exams; and the documents it usually requests at the outset of an exam. The Risk Alert is intended to help broker-dealers prepare for exams and assist them in their compliance efforts. The Risk Alert expresses the views of Division staff and does not add, alter or amend any law, regulation or SEC statement. This article discusses the key takeaways from the Risk Alert. See “SEC Risk Alert Provides Clarity on Exam Selection Process for Advisers” (Dec. 7, 2023).