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SEC Settles Enforcement Proceedings Against Quantitative Hedge Fund Manager for Alleged Algorithmic Model Vulnerabilities

On January 16, 2025, the SEC announced the settlement of administrative proceedings brought against a hedge fund manager that used algorithmic investment models to provide investment advice to its private fund and separately...more

SEC Settles Enforcement Proceedings Against Investment Adviser Regarding Alleged Misleading Disclosure Concerning Capital Gains...

On January 17, 2025, the SEC announced the settlement of administrative proceedings brought against a registered investment adviser for allegedly making materially misleading statements relating to capital gains distributions...more

SEC Settles Enforcement Proceedings Against Adviser/Broker-Dealer for Alleged Fiduciary Duty Breaches Related to Receipt of...

On August 12, 2024, the SEC announced the settlement of administrative proceedings brought against a dually registered investment adviser and broker-dealer (the adviser) for alleged breaches of fiduciary duty related to its...more

SEC Settles Enforcement Proceedings Against Adviser Regarding Alleged “Pay-to-Play” Political Contribution (Updated)

On August 19, 2024, the SEC announced the settlement of administrative proceedings brought against a registered investment adviser for alleged violations of Section 206(4) of the Investment Advisers Act of 1940 and Rule...more

SEC Settles Enforcement Proceedings Against Adviser for Allegedly Misleading Investors Regarding Its Investment Strategy

On September 19, 2024, the SEC announced the settlement of administrative proceedings brought against a registered investment adviser for allegedly making misleading statements regarding how it managed investments for clients...more

FinCEN Adopts Final Rule Extending Anti-Money Laundering Compliance Program Requirements to Certain Investment Advisers

On August 28, 2024, the Financial Crimes Enforcement Network (FinCEN) adopted a final rule (Final Rule) that adds registered investment advisers (RIAs) and exempt reporting advisers (ERAs) to the definition of “financial...more

District Court Issues Injunction Against Missouri ESG Rules

On August 14, 2024, the U.S. District Court for the Western District of Missouri issued a statewide permanent injunction against two ESG-related rules issued by the Missouri Securities Division that took effect in July 2023...more

Fifth Circuit Court of Appeals Vacates SEC's 2022 Rescission of Certain 2020 Amendments to Proxy Rules

On June 26, 2024, the U.S. Court of Appeals for the Fifth Circuit vacated the SEC’s 2022 rescission of certain rule amendments regarding proxy advisory firms, holding that the SEC’s explanation for rescinding the amendments...more

SEC and FinCEN Propose Customer Identification Program Requirements for Investment Advisers

On May 13, 2024, the SEC and FinCEN jointly proposed a new rule under the Bank Secrecy Act (BSA) that would impose new customer identification program (CIP) requirements on registered investment advisers and exempt reporting...more

SEC Settles Charges Against Dually-Registered Broker-Dealer and Adviser for Alleged Failure to Address Conflicts of Interest

On May 21, 2024, the SEC announced the settlement of administrative proceedings brought against a dually-registered broker-dealer and investment adviser for its alleged failure to address conflicts of interest in compliance...more

SEC Staff's Latest Marketing Rule Risk Alert Highlights Initial Observations from Examinations

On April 17, 2024, the SEC’s Division of Examinations issued its latest risk alert regarding Rule 206(4)-1 of the Investment Advisers Act of 1940, known as the Marketing Rule. Following the examinations staff’s June 2023 and...more

SEC Settles Enforcement Proceedings Against Five Advisers for Alleged Marketing Rule Violations

On April 12, 2024, the SEC announced the settlement of administrative proceedings brought against five registered investment advisers for alleged violations of Rule 206(4)-1 under the Investment Advisers Act of 1940, known as...more

SEC Staff Risk Alert Focuses on Preparations for T+1 Settlement

On March 27, 2024, the staff of the SEC’s Division of Examinations issued a risk alert highlighting its intent to focus, during examinations and outreach on market participants’ preparations for the shortening of the standard...more

SEC Settles Charges Against Advisers for Alleged False and Misleading Statements About Their Use of Artificial Intelligence

On March 18, 2024, the SEC announced that it had settled charges against two investment advisers for allegedly making false and misleading statements about their use of artificial intelligence (AI) in providing advisory...more

SEC Adopts Amendments to Narrow the Internet Adviser Exemption

On March 27, 2024, the SEC adopted amendments to Rule 203A-2(e) (the Internet Adviser Exemption) under the Investment Advisers Act of 1940 to narrow the types of small investment advisers that can register with the SEC in...more

SEC Staff Issues Risk Alert Regarding the Selection and Scope of Adviser Examinations

On September 6, 2023, the staff of the SEC’s Division of Examinations issued a risk alert describing the staff’s risk-based approach in selecting registered investment advisers to examine and in determining the scope of areas...more

SEC Settles Enforcement Proceedings Against Nine Advisers for Alleged Marketing Rule Violations

On September 11, 2023, the SEC announced the settlement of administrative proceedings brought against nine registered investment advisers for disseminating hypothetical performance returns on their public websites without...more

SEC Proposes Amendments to the Internet Adviser Exemption

On July 26, 2023, the SEC issued proposed rules under the Investment Advisers Act of 1940 to narrow the types of smaller investment advisers that can register with the SEC in reliance on the Internet adviser exemption....more

SEC Adopts Significant Money Market Fund Reforms and Amended Form PF Reporting Requirements for Private Liquidity Fund Advisers

On July 12, 2023, in a 3-2 vote, the SEC adopted amendments to Rule 2a-7 under the Investment Company Act of 1940, representing the SEC’s latest reforms of the rules governing money market funds in its effort to improve their...more

SEC Proposes New Fair Valuation Framework for Registered Funds

Under the Investment Company Act of 1940, securities held by a fund for which market quotations are readily available are to be priced at current market value, and securities for which market quotations are not readily...more

SEC Issues Notice of Intention to Grant Exemption from Board’s In-Person Meeting Requirement to Approve Sub-Advisory Agreements

On January 21, 2020, the SEC issued a notice of its intention to grant exemptive relief to a registered fund and its investment adviser that would permit the fund’s board to approve new sub-advisory agreements and material...more

OCIE Announces 2020 Examination Priorities

On January 7, 2020, the SEC’s Office of Compliance Inspections and Examinations (OCIE) announced its 2020 examination priorities for regulated entities, including investment advisers and registered funds. The examination...more

OCIE Publishes Cybersecurity and Resiliency Observations

On January 27, 2020, the SEC’s Office of Compliance Inspections and Examinations (OCIE) published observations from its examinations of regulated entities, including funds and investment advisers, to assist those entities in...more

FINRA Announces 2020 Exam Priorities

On January 9, 2020, FINRA released its 2020 Risk Monitoring and Examination Priorities Letter for its member firms. The exam priorities are organized into four categories: (1) sales practice and supervision; (2) market...more

Investment Services Regulatory Update - December 2019

New Rules, Proposed Rules, Guidance and Alerts – PROPOSED RULES – SEC Proposes Rule Changes for Proxy Advisory Firms – On November 5, 2019, the SEC issued a release proposing amendments to the federal proxy rules...more

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