Published on Dec 14th, 2022 |

New SEC Rules to be Aware of for 2023

Vigilant Insights

Brief Introduction

Four important SEC rules were discussed during the National Compliance Seminar last month. Two have already been adopted, continuing to add complexity to the regulatory environment.

William Birdthistle, Director of the SEC’s Division of Investment Management, made comments about the new rules at the SEC’s National Compliance Seminar which are recorded and availableMost notably, he touched on the Marketing Rule for which he encouraged rigorous compliance, and Reg BI and the Advisers Act fiduciary duty which will remain a top priority for SEC exams in 2023.

The Proposed Rules

The Proposed Rules

  1. New Oversight Requirements for Certain Services Outsourced (Oct. 26th)
    • Due diligence and monitoring of third-party service providers would be required when outsourcing services.
  2. Enhancements to Open-Ended Fund Liquidity Framework (Nov. 2nd)
    • Amendments were proposed to improve liquidity risk management programs to better prepare funds for stressed conditions and improve transparency in liquidity classifications. Open-ended funds, other than money market or ETFs, may be required to use swing pricing to adjust the NAV per share.

The Adopted Rules

The Adopted Rules

      3. Amendments to Form N-PX (Nov. 2nd)

    • Amendments were adopted to Form N-PX to enhance transparency of fund and institutional investment manager proxy voting records. This was adopted on November 2nd.

      4. Amendments to Fund Shareholder Reports Requirement (Oct. 26th)

    • Shareholder reports for mutual funds and ETFs are expected to be concise, with the fund’s performance, portfolio holdings, and fund expenses being easily accessible.

Vigilant's Final Conclusion

Viglant’s Final Conclusion

In an ever-changing and increasingly aggressive regulatory environment, firms will benefit from compliance support that leverages decades of experience and remains up to date on all SEC actions affecting business operations. At Vigilant, we are committed to supporting your firm’s financial goals while helping you create a culture of compliance.

If you decide to watch the recording of the National Compliance Seminar, an evaluation and feedback form is available. If you have any questions about the topics discussed in the seminar, please feel free to contact us.

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