As we head further into 2025, the landscape of SEC exams and enforcement is poised for significant shifts. How will the SEC adapt to emerging trends and evolving market dynamics? In the first issue of Beyond the Deal in 2025,...more
As reported today, Vice President Harris has announced Tim Walz, the sitting governor of Minnesota, as her running mate. This announcement is particularly significant for investment advisers due to the Advisers Act Political...more
As we reach the midpoint of 2024, the SEC has maintained its rigorous enforcement stance on the private funds industry, proposing new rules and oversight tools to better identify and investigate market practices. As 2024...more
6/14/2024
/ Artificial Intelligence ,
Data Retention ,
Employee Training ,
Enforcement ,
Fraud ,
Fund Managers ,
Hedge Funds ,
Indemnification ,
Instant Messaging Apps ,
Investment Adviser ,
Investment Advisers Act of 1940 ,
New Rules ,
Pay-To-Play ,
Policies and Procedures ,
Private Funds ,
Recordkeeping Requirements ,
Retail Investors ,
Securities and Exchange Commission (SEC)
In a significant decision released Wednesday morning, a unanimous three-judge panel for the U.S. Court of Appeals for the Fifth Circuit vacated what have come to be known as the Private Fund Adviser Rules, a set of rules and...more
The SEC’s recent settlement involving a “pay-to-play” rule violation by a private equity firm is a timely reminder for fund managers, especially with the November elections approaching.
As a refresher, Rule 206(4)-5 of...more
5/29/2024
/ Compliance ,
Employee Training ,
Enforcement ,
Exempt Reporting Advisers (ERAs) ,
Fund Managers ,
Investment Adviser ,
Investment Advisers Act of 1940 ,
Pay-To-Play ,
Political Contributions ,
Private Equity Firms ,
Securities and Exchange Commission (SEC) ,
Settlement
The SEC’s new and proposed rules on cybersecurity and cyber-incident reporting will have a dual impact on private investment advisers and funds.
First, the proposal by the SEC will impose cybersecurity related...more
4/18/2024
/ Cyber Incident Reporting ,
Cybersecurity ,
Data Collection ,
Enforcement ,
Governance Standards ,
Investment Adviser ,
New Rules ,
Policies and Procedures ,
Recordkeeping Requirements ,
Regulatory Agenda ,
Risk Management ,
Securities and Exchange Commission (SEC) ,
Technology Sector
In its final Private Fund Adviser Rules adopted last year, the SEC dropped one of the more controversial proposed rules—the proposal to prohibit contractual exculpation or indemnification provisions that would shield or...more
4/16/2024
/ Anti-Fraud Provisions ,
Compliance ,
Enforcement ,
Fiduciary Duty ,
Indemnification ,
Investment Adviser ,
Investment Advisers Act of 1940 ,
Negligence ,
Private Funds ,
Releases ,
Securities and Exchange Commission (SEC)
Adviser-led secondary transactions have seen explosive growth over the last five years. That growth has brought increased regulatory concerns over the conflicts of interests inherent in these transactions and a perceived...more
On November 14, 2023, the SEC’s Division of Enforcement announced its Enforcement Results for Fiscal Year 2023. Below are some key takeaways for fund managers:
The Commission brought 760 total enforcement actions in FY...more
11/21/2023
/ Broker-Dealer ,
Civil Monetary Penalty ,
Disgorgement ,
Enforcement ,
Enforcement Actions ,
Environmental Social & Governance (ESG) ,
Investment Adviser ,
Investment Companies ,
Noncompliance ,
Private Funds ,
Rulemaking Process ,
Securities and Exchange Commission (SEC) ,
Settlement ,
Whistleblower Awards ,
Whistleblowers
On November 4, 2022, compliance with amended Rule 206(4)-1 (the “Marketing Rule”) became mandatory for all investment advisers registered with the Securities and Exchange Commission (the “SEC”). Seven months since the...more
As IPOs and other traditional paths to liquidity for private assets have become more challenging, GP-led secondary transactions have emerged as a powerful and popular tool across closed-end private funds, leading to explosive...more
The SEC’s Enforcement Division is conducting a sweep investigation of large investment advisers regarding their employees’ use of “off-channel” communications. The sweep, which has been widely reported in the press, focuses...more
4/25/2023
/ Asset Management ,
Breach of Duty ,
Compliance ,
Enforcement Actions ,
Fiduciary Duty ,
Investigations ,
Investment Adviser ,
Investment Advisers Act of 1940 ,
Private Funds ,
Recordkeeping Requirements ,
Securities and Exchange Commission (SEC)
On March 15, 2023, the U.S. Securities and Exchange Commission (“SEC”) released its proposal to amend Regulation S-P: Privacy of Consumer Financial Information and Safeguarding Customer Information (the “Proposed...more
4/5/2023
/ Cryptoassets ,
Cybersecurity ,
Data Breach ,
Enforcement ,
Federal Trade Commission (FTC) ,
Information Technology ,
Investment Adviser ,
Investment Company Act of 1940 ,
Notice Requirements ,
Policies and Procedures ,
Proposed Amendments ,
Regulation S-P ,
Securities and Exchange Commission (SEC) ,
Sensitive Personal Information
In the registered fund world, we spent much of the past year focused on complying with – and implementing – new, operationally complex rules covering derivatives, valuation and fund-of-fund investments, among others. This...more