Confession: writing this in May 2025, we cannot predict with confidence what the rest of 2025 will bring. The year has already seen four months of change and upheaval – political, regulatory, and economic. The new US...more
5/1/2025
/ Compliance ,
Department of Justice (DOJ) ,
Enforcement ,
Environmental Social & Governance (ESG) ,
Foreign Corrupt Practices Act (FCPA) ,
Investment Funds ,
Portfolio Companies ,
Private Equity ,
Private Funds ,
Regulatory Requirements ,
Risk Management ,
Securities and Exchange Commission (SEC) ,
Securities Regulation
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
The Securities and Exchange Commission’s (“SEC”) National Examination Program is designed to improve compliance, prevent fraud, monitor risk and inform policy. It is also a consistent source of referrals to the SEC’s Division...more
11/13/2024
/ Artificial Intelligence ,
Compliance ,
Confidentiality Agreements ,
Custody Rule ,
Disclosure Requirements ,
Enforcement ,
Environmental Social & Governance (ESG) ,
Filing Requirements ,
Fraud ,
Fund Managers ,
Greenwashing ,
Indemnification ,
MNPI ,
Pay-To-Play ,
Recordkeeping Requirements ,
Retail Investors ,
Securities and Exchange Commission (SEC) ,
Whistleblowers
In a significant enforcement action, the SEC sanctioned a private fund manager for failing to establish and maintain adequate policies and procedures to prevent the misuse of material nonpublic information (MNPI) while...more
9/9/2024
/ Collateralized Loan Obligations ,
Compliance ,
Enforcement Actions ,
Equity ,
Fraud ,
Investment Advisers Act of 1940 ,
MNPI ,
Policies and Procedures ,
Securities Act of 1933 ,
Securities and Exchange Commission (SEC) ,
Securities Exchange Act of 1934
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
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)
2023’s excitement for generative artificial intelligence (AI) prompted the SEC to respond on multiple fronts – stump speeches, rulemaking, new exam priorities and sweeps and previewing potential enforcement actions. SEC Chair...more
Economic headwinds and the interest rate environment that developed over the course of 2023 increased financial stress on portfolio companies and portend heightened litigation risk in 2024 for portfolio companies and their...more
Since 2015, the SEC has brought nearly two dozen enforcement actions for violations of the whistleblower protection rules under Rule 21F-17(a) against employers for actions taken to impede reporting to the SEC. The bulk of...more
10/19/2023
/ Carve Out Provisions ,
Compliance ,
Confidentiality Agreements ,
Enforcement Actions ,
Financial Industry Regulatory Authority (FINRA) ,
Penalties ,
Risk Mitigation ,
Securities and Exchange Commission (SEC) ,
Separation Agreement ,
Settlement Agreements ,
Whistleblower Protection Policies ,
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
Recent enforcement actions highlight the increased regulatory scrutiny that private funds may face with respect to internal cybersecurity protocols and responses to cyber-crimes and cyber incidents under new and updated...more
5/23/2023
/ Coinbase ,
Compliance ,
Cyber Crimes ,
Cybersecurity ,
Enforcement Actions ,
Investment Advisers Act of 1940 ,
Investment Company Act of 1940 ,
New Legislation ,
Popular ,
Privacy Laws ,
Private Funds ,
Robinhood Financial ,
Sanctions ,
Securities and Exchange Commission (SEC)
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)