Advisors failing to choose the least expensive mutual fund classes for retail investors are being targeted by the Securities and Exchange Commission this year, SEC Enforcement Division Asset Management Unit Chief Marshall Sprung announced Friday.

He said undisclosed conflicts of interest will be another priority for retail accounts investigations by the unit.

Sprung added his enforcement section is also on particular watch for conflicts of interest and valuation problems at private funds and valuation and performance and governance issues for registered funds.

The executive made his comments at the Practising Law Institute’s annual SEC Speaks conference in Washington, D.C.

Also at the session SEC Enforcement Complex Financial Instruments Unit Chief Michael Osnato said his section will be on watch for people who design retail complex investment products failing to explain them well to financial advisors who sell the often hard-to-understand financial vehicles.

He warned his staffers often see sophisticated market actors who seek to exploit gaps in regulatory coverage.

For mutual funds, SEC Division of Economic and Risk Analysis Deputy Director Scott Bauguess said a fixed-income fund that looks like an equity fund may be reason for examiners to look deeper.