ComplianceAlert

SEC Updates Form PF Reporting for Private Funds

It appears that the SEC is following through on its promise to crack down on private markets, rolling out its first significant rule changes for private funds. Earlier this month, the Commission adopted new Form PF changes that will affect all private funds required to file the form. As of today, most firms are either filing the form quarterly or annually, depending on asset size. The filing requirements will change under the new amendments. Specifically,…

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ComplianceAlert

SEC Cites Weaknesses in Branch Office Oversight

A new Risk Alert (“the Alert”) focused on branch office supervision and customer data safekeeping has been issued by the Division of Examinations (“EXAMS”). This is the third Alert of 2023, and it discusses Staff findings from examinations conducted on both registered investment advisers and broker-dealers. The SEC discovered issues during these examinations in relation to Reg S-P and customer data. Most weaknesses found were in relation to vendor and technology systems that have access…

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ComplianceAlert

SEC Identifies Deficiencies at Newly-Registered Advisers

A new Risk Alert (“the Alert”) focused on newly-registered SEC investment advisers has been issued by the Division of Examinations (“EXAMS”). This second Risk Alert of 2023 discusses Staff findings from examinations conducted on newly-registered advisers. The term “newly-registered adviser” is not defined by the SEC but is generally believed to be an entity registered as an adviser with the SEC for no more than one year. EXAMs stated that it uses these examinations to…

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ComplianceAlert

Certain Focus Areas Top SEC’s 2023 Examination Priorities

The highly anticipated 2023 SEC Examination Priorities statement from the Division of Exams (“EXAMS”) was released last week. At least the timing was an improvement over last year, when the priorities were not released until late March and well into the examination year. The 2023 focus list is not exactly a surprise based upon recent Staff speeches and rulemaking initiatives. It provides written confirmation of what the industry has suspected the SEC will pursue with…

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ComplianceAlert

Failures Cited in SEC Alert on Identity Theft

A recent Risk Alert (the “Alert”) issued by the SEC’s Division of Examinations (“EXAMS”) discusses how both investment advisers and broker-dealers are failing to meet the requirements under Reg S-ID regarding the prevention of identity theft. The Alert summarizes the various deficiencies found during examinations of broker-dealers and investment advisers. Although the Alert is quite general in its discussion, it provides insight into what the Staff is looking for in Reg S-ID Programs (the “Programs”)…

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