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Investment Advisers Act of 1940 Investment

Secretariat

Reflections on Initial SEC Policy Changes Early in the Atkins Era

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Since Paul Atkins became Chairman of the U.S. Securities and Exchange Commission (SEC) on April 21, 2025, the SEC has announced significant pivots in its approaches to enforcement, regulatory guidance, investment adviser...more

Seward & Kissel LLP

July 31 Deadline for BE-180 Reports

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The BE-180 is the quinquennial Benchmark Survey of Financial Services Transactions between U.S. Financial Services Providers and Foreign Persons (the “BE-180 Survey”) conducted by the U.S. Bureau of Economic Analysis (the...more

Troutman Pepper Locke

Supreme Court Denies Certiorari in SEC Disgorgement Case

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On June 6, the U.S. Supreme Court denied the petition for certiorari in the case of Navellier & Associates, Inc. v. Securities and Exchange Commission (SEC). This decision effectively upholds the lower courts’ rulings,...more

Carlton Fields

Builder of Investment Models Deviates From Blueprints - Employee’s Rogue Remodeling Costs Builder Plenty

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The SEC’s recent order instituting administrative and cease-and-desist proceedings (OIP) against registered investment advisers Two Sigma Investments LP and Two Sigma Advisers LP illustrates significant risks for investment...more

Moore & Van Allen PLLC

Acting Chairman Uyeda Suggests Revisiting the Role of State Securities Regulators in Connection with Mid-size Investment Advisers...

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On April 8, 2025, then Acting Chairman Mark T. Uyeda of the U.S. Securities and Exchange Commission (“SEC”), highlighted in remarks before the Annual Conference on Federal and State Securities Cooperation two areas where...more

Seward & Kissel LLP

SEC Easing Conditions for Co-Investment Relief for BDCs and Closed-End Funds

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On April 3, 2025, the U.S. Securities and Exchange Commission (“SEC”) issued a notice of proposed exemptive relief to FS Credit Opportunities Corp. and its affiliates (Applicants), introducing more flexible co-investment...more

Eversheds Sutherland (US) LLP

SEC staff issues new FAQs on the Marketing Rule, providing investment advisers with flexibility and clarity

On March 19, 2025, the Securities and Exchange Commission’s (SEC) Division of Investment Management staff (Staff) issued two new Frequently Asked Questions (FAQs) focused on Rule 206(4)-1 under the Investment Advisers Act of...more

Proskauer Rose LLP

New Tariffs, Old Issues: Post-Liberation Day Advisers Act Considerations for Private Fund Managers

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Markets remain exceptionally volatile following the announcement of the U.S. “Liberation Day” tariffs and retaliatory measures from other countries. While the ultimate path of policy remains uncertain, recent developments are...more

Seward & Kissel LLP

SEC Staff Updates FAQs Regarding Marketing Rule Compliance – Gross and Net Performance

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On March 19, 2025, the staff of the Division of Investment Management (the “SEC Staff”) of the Securities and Exchange Commission (the “SEC”) released an update to its Frequently Asked Questions1 (the “FAQs”) relating to...more

Seward & Kissel LLP

SEC Charges Investment Adviser with Compliance Policy Failures Regarding its Handling of Material Nonpublic Information

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Who may be interested: Registered Investment Companies; Registered Investment Advisers; Compliance Officers - Quick Take: The SEC charged a hedge fund manager registered as an investment adviser (Adviser) with failing to...more

Lowenstein Sandler LLP

Former CIO Indicted for $600M Fraud in Parallel DOJ, SEC Actions

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On November 25, 2024, the U.S. Department of Justice (DOJ) and the U.S. Securities and Exchange Commission (SEC, and collectively with DOJ, the Government) brought parallel criminal and civil enforcement actions against the...more

Vinson & Elkins LLP

SEC Charges Invesco Advisers for Making Misleading ESG Claims

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On November 8, 2024, the U.S. Securities and Exchange Commission (“SEC”) announced a settled enforcement action (the “SEC Order”) against Invesco Advisers, Inc. (“Invesco”), an investment advisory firm, for making misleading...more

Seward & Kissel LLP

SEC Charges Adviser with Failing to Follow ESG Investment Criteria

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Who may be interested: Registered Investment Companies; Directors of Registered Investment Companies; Investment Advisers - Quick Take: The SEC recently charged a registered investment adviser for alleged misstatements and...more

Snell & Wilmer

SEC Division of Examinations Priorities for 2025: Examinations Will Prioritize New Rules for Form PF and Regulation S-P, Fiduciary...

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On October 21, 2024, the Division of Examinations (the “Division”) of the U.S. Securities and Exchange Commission (the “SEC”) issued its annual examination priorities for fiscal year 2025. As with its 2024 examination...more

Carlton Fields

SEC Penalties for Off-Channel Communications: Still Blowing in the Wind

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The SEC has increased its enforcement efforts against firms that are registered as broker-dealers and/or investment advisers for alleged violations of federal securities laws involving “off-channel communications.” Such...more

DarrowEverett LLP

Fifth Circuit Puts the Brakes on SEC’s Private Fund Rules: What’s Next For Private Fund Advisers

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In a continuation of recent court decisions overturning the rulemaking authority of federal agencies, a recent decision by the U.S. Court of Appeals for the Fifth Circuit vacated the Securities and Exchange Commission’s (SEC)...more

Proskauer Rose LLP

Unrepresentative Returns: SEC Sanctions Hedge Fund Manager for Misleading Marketing Practices

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On June 14, 2024, the SEC announced an enforcement action settlement with a Pennsylvania-based hedge fund manager for violating the Marketing Rule under the Investment Advisers Act. The SEC found that the adviser had misled...more

Mayer Brown

Fifth Circuit Vacates Private Fund Adviser Rules

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On June 5, 2024, a three-judge panel of the Fifth Circuit Court of Appeals (the “Fifth Circuit”) unanimously vacated the rule adopted by the US Securities and Exchange Commission (the “SEC”) to enhance the regulation of...more

Eversheds Sutherland (US) LLP

UK's FCA consults on payment optionality for investment research

The FCA consultation paper CP24/7 “Payment Optionality for Investment Research” considers the reintroduction of the bundling of research payments with broker’s execution fees....more

Kohrman Jackson & Krantz LLP

The SEC Cracks Down on “AI Washing”

The Securities and Exchange Commission (SEC) has sent clear signals that it will pursue companies for “AI washing” — touting the use of artificial intelligence in ways that are false or misleading. The SEC has imposed fines...more

K&L Gates LLP

The SEC Limits the Internet Adviser Exemption

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Brief Overview - On 27 March 2024, the US Securities and Exchange Commission (SEC) adopted amendments (the Amendments) to Rule 203A-2(e) under the Investment Advisers Act of 1940 (Advisers Act). Rule 203A-2(e) is commonly...more

Paul Hastings LLP

Pecuniary vs. Nonpecuniary Factors: Understanding the Potential Scope of Anti-ESG Restrictions in U.S. State Laws

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Executive Summary and Overview- State anti-ESG lawmakers have enacted legislation aimed at restricting investors from considering ESG factors in their investment strategies and decisions by requiring state financial...more

Keating Muething & Klekamp PLL

New Diversity Reporting Law for Venture Capital Companies with a Nexus to California

On October 8, 2023, California Governor Gavin Newsom signed Senate Bill 54 (“SB 54”) into law, which attempts to increase diversity, equity, and inclusion amongst venture capital (“VC”) investments. The law is the first...more

Skadden, Arps, Slate, Meagher & Flom LLP

Investment Management Update - November 2023

...SEC Adopts Amendments to Fund Names Rule - On September 20, 2023, the U.S. Securities and Exchange Commission (SEC) adopted amendments to Rule 35d-1 under the Investment Company Act of 1940 (the Fund Names Rule) as well...more

Goulston & Storrs PC

Need to Know: SEC’s New Private Fund Rules

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The Securities and Exchange Commission (“SEC”) recently adopted sweeping new rules (the “Rules”) under the Investment Advisers Act of 1940 (the “Advisers Act”) that include significant changes governing how private...more

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