ComplianceAlert

Marketing Exams Show Private Fund Shortcomings

The SEC’s Division of Examinations (the “Division”) recently issued a Risk Alert (the “Alert”) on its findings from private fund adviser examinations that covered compliance with revised Rule 206(4)-1 (the “Marketing Rule”). The specific areas of focus within the Alert reviewed the use of testimonials, endorsements, and third-party ratings in marketing materials. The Alert indicates that many private fund advisers are falling short of compliance due to lack of proper disclosure practices, among other requirements.…

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More SEC exams ahead with a risk-focused approach (ThinkAdvisor)

Investment advisers should prepare for an increased SEC examination frequency in 2026, but with some new twists. This includes more reliance on targeted exams or “sweeps” and more risk-focused document requests based upon previous findings at firms. In the lead comments, FrontLine Compliance Founder and President, Amy Lynch, cites two likely areas of exam focus this year – Reg S-P compliance and firms’ use of artificial intelligence (AI). There could also be a large emphasis…

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