The SEC’s Division of Examinations (EXAMS) issued a key Risk Alert (the “Alert”) that tackles the thorny compliance issues surrounding ESG (Environmental, Social, and Governance) investment themes. EXAMS has conducted reviews of RIAs and funds that follow ESG strategies and compiled a list of both positive and negative findings from those examinations. RICS (Registered Investment…
The SEC has published its list of rules that it will revisit pursuant to Section 610 of the Regulatory Flexibility Act (“RFA”). The majority of the rules listed affect registered investment advisers and are on the agenda for review this year. Under the RFA, specific consideration must be given to the following factors when assessing…
The day after SEC Chair nominee Gary Gensler’s confirmation hearing, the Division of Examinations (“EXAMS”) issued its 2021 Examination Priorities letter (“the Letter”). The Letter shares similarities to the 2020 exam priorities with a few twists. In this ComplianceAlert, we focus on the Staff’s priorities for registered investment advisers and especially how they may differ…
Last month, the SEC voted to adopt new Rule 206(4)-1 (“Advertising Rule” or “Rule”) under the Advisers Act, which updated the Rule and merged it with the Cash Solicitation Rule, 206(4)-3. This effectively rescinded Rule 206(4)-3. The new Rule is principle-based and replaces many of the SEC No-Action Letters that the industry has relied upon…
When the SEC voted last month to adopt new Rule 18f-4 under the Investment Company Act of 1940 (“IC Act” or the “Act”), it permitted the greater use of derivatives by certain registered investment companies. The new rule covers mutual funds (excluding money market funds), ETFs, closed-end funds, and business development companies (BDCs). Derivative use…