The Market Participants Division (“MPD” or “Division”) of the CFTC has issued a crucial no-action letter (“the letter”) to the private fund industry which serves as a follow-on to the December letter (CFTC Letter No. 25-50). This letter (CFTC Letter No. 26-06) provides relief to private funds that are registered with the CFTC as CPOs/CTAs under Regulation 4.7 and delegate to a related Designated CPO. All other components of the letter are the same as…
Last month the SEC’s Division of Investment Management updated the Marketing Compliance Frequently Asked Questions (FAQ) on its website. The latest information focused on the use of model fees in composites and the use of promoters with disciplinary histories.
The new FAQs are discussed below, in summary.
FAQ on Model Fees
Many advisers seem to be questioning how to show the use of model fees in marketing materials. The adopting release to the Marketing Rule…
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.…
The SEC’s 2026 Examination Priorities report (“Exam Priorities”) from the Division of Examinations (the “Division”) was issued shortly after the federal government reopened. You may have received information on the report’s details and reviewed the SEC’s exam focus areas. We have taken the time to read between the lines and interpret the hidden messages within the Exam Priorities. Here we provide you a different take on what will really happen in 2026.
2026 SEC Exams…
The SEC is moving forward with some of its new rulemaking despite the talk of deregulation. While several proposed rules have been abandoned and compliance dates have been pushed forward for certain adopted rules, others have been finalized in a typical fashion with more immediate compliance dates. This includes the 2024 amendments to Regulation S-P that were adopted in May last year and will become a new requirement for all large investment advisers on the…
