Category Archives: SEC
 

Regulatory Alert – SEC Amends Reg S-P

May 28, 2024

The U.S. Securities and Exchange Commission (SEC) has adopted amendments to Regulation S-P which require investment adviser firms registered with the SEC to adopt written policies and procedures for incident response programs to address unauthorized access to or use of customer information including procedures for providing timely notification to customers affected by an incident involving sensitive customer information.

Continue Reading

SEC Taking a Closer Look at Whether Investment Advisers Are Obtaining “Informed Consent” When Amending Advisory Agreements

October 17, 2023

New Exam Priority

The Division of Examinations of the U.S. Securities and Exchange Commission (“SEC”) recently issued the Fiscal Year 2024 Examination Priorities signaling areas of particular interest for the upcoming audits of investment advisers. Notably, this year’s exam priorities introduces what appears to be a new focus on whether investment adviser firms are obtaining “informed consent” from clients when making material changes to advisory agreements:

Continue Reading

Summary of SEC’s Finalized Private Fund Adviser Rules

September 19, 2023

Regulatory Alert

The United States Securities and Exchange Commission (“SEC”) recently issued a final set of rule amendments under the Investment Advisers Act of 1940, primarily aimed at enhancing the regulatory framework governing investment advisers to private funds. The new set of rules, as  described in SEC Release No. IA-6383, is designed to protect investors who invest directly or indirectly in private funds. It focuses on increasing transparency in compensation arrangements and prohibiting conflicted arrangements involving private funds. Through an audited financial statement requirement, the new rules also aim to prevent fraudulent activities by registered investment advisers advising private funds. Finally, this set of new rules includes an amendment requiring all SEC-registered investment advisers to document in writing the annual review of their compliance policies and procedures.

Continue Reading

SEC Fines Investment Adviser for Failure to File Form 13F

September 18, 2023

Introduction

The United States Securities and Exchange Commission (“SEC”) has initiated an administrative enforcement proceeding against an investment adviser firm registered with the SEC for allegedly failing to file the  quarterly Form13F from February 2017 until April 2022.

Continue Reading

The SEC’s Crackdown on Whistleblower Retaliation: What Investment Adviser Firms Need to Know

September 09, 2023

In the ever-evolving landscape of securities regulation, it is crucial for investment adviser firms registered with the United States Securities and Exchange Commission (“SEC”) to stay vigilant and informed about current enforcement actions. A recent cease-and-desist proceeding instituted by the SEC against a clean energy company has sent a clear message regarding whistleblower protections and the use of severance agreements. As a result, we’ll explore the implications of this enforcement action and how it relates to investment adviser firms in light of SEC Rule 21F-17.

Continue Reading

SEC Provides Investment Advisers with Insights on Examination Process

September 07, 2023

The Division of Examinations of the United States Securities and Exchange Commission (“SEC”) recently issued a Risk Alert dated September 6, 2023, that provides valuable insights into the examination process for investment advisers. This Risk Alert serves as a guide on how the SEC identifies investment advisers for examinations and the documents and information requested. Notably, it includes a separate attachment titled “Typical Initial Information Examiners Request of Investment Advisers” which is a helpful resource for investment advisers to understand what to expect during an SEC examination.

Continue Reading

Investment Adviser Settles SEC Enforcement Action for Failure to Conduct Fee Audits

August 30, 2023

Summary

The United States Securities and Exchange Commission (“SEC”) recently initiated an enforcement action against with an investment adviser firm for allegedly failing to conduct sufficient fee audits which resulted in overcharging more than 10,900 investment advisory accounts, amounting to over $26.8 million in advisory fees. Without admitting or denying the SEC charges, the investment adviser firm has agreed to pay a $35 million civil penalty to settle this proceeding.

Continue Reading