Vigilant Compliance Newsletter | April 2024
Monthly Newsletter
In April, we saw Vigilant Insights, SEC Charges, SEC Releases, and a FINRA Fine.
Below is a brief overview of what took place in the month of April, and what is approaching for May.
New Rules, Regulations and Guidance
Upcoming Filings:
- 05/07/24 – Form N-MFP
- 05/10/24 – Form 13G Monthly
- 05/15/24 – Form 13F Quarterly
- 05/15/24 – Form CTA-PR
- 05/21/24 – AIFMD Annex IV – Fund of Funds
- 05/30/24 – Form PF Hedge Fund and Private Equity Advisers Quarterly
- 05/30/24 – Form N-PORT
- 05/30/24 – Form CPO-PQR
- To stay up to date with the SEC Filing Deadlines in 2024, click HERE to view Vigilant’s Filing calendar.
Events & Public Appearances by Officials:
- 05/02/24 – Closed Meeting
- 05/06/24 – Small Business Capital Formation Advisory Committee Meeting
- 05/09/24 – Eleventh Annual Conference on Financial Market Regulation
- 05/16/24 – 2024 Conference on Emerging Trends in Asset Management
- 05/23/24 – Investment Company Institute 2024 Leadership Summit
- To see upcoming 2024 SEC Meetings and Public Appearances click HERE!
Materials
Vigilant Insights:
SEC Marketing Rule Risk Alert | Thayne Gould Reacts
- Vigilant Director, Thayne Gould, provided his reaction and insights on FundFire focused on the most recent (third) Marketing Rule Risk Alert.
- To view her insights and our conclusion, click here.
Fiduciary Duty and FINRA Enforcement | Patrick Chism Insights
- Vigilant Managing Director, Patrick Chism, was quoted in a recent Ignites article related to the FINRA investigation of a Firm for its use of fee-waivers.
- To view her insights and our conclusion, click here.
SEC Charges:
- On April 15, 2024, the SEC announced an RIA violated the Pay-To-Play Rule by continuing to receive compensation from a government entity within two years after a campaign contribution to an elected official who had influence over the selection of Investment Advisers for advisory services for the government entity.
- The RIA involved is a Private Fund Manager that serves as Investment Adviser to two (2) Hedge Funds with now $376 Million in AUM, but previously as of the enforcement action, had $644 million in regulatory AUM.
- To view our executive summary and our conclusion, click here.
- The SEC announced on April 12th, that they charged five (5) Registered Investment Advisers (“RIAs”) for Marketing Rule Violations.
- To view what was discovered and our conclusion, click here.
- On April 3rd, the SEC announced charges against a Registered Investment Adviser (“RIA”) for “widespread and longstanding failures” regarding the recordkeeping of electronic communications. In addition, the Firm was also charged with failing to enforce its Code of Ethics.
- To view what happened and our conclusion, click here.
SEC Releases:
- Gurbir Grewal, Director of the Division of Enforcement, spoke at Program on Corporate Compliance and Enforcement (“PCCE”) in April about the risks presented by fast-pace technological changes.
- To view the key takeaways and our conclusion, click here.
- Recently, the SEC Chair, multiple Commissioners, and Directors gave their opinions about the state of the regulatory environment.
- To view the key takeaways and our conclusion, click here.
- On the heels of the recent SEC announcement of 5 RIAs being charged for Marketing Rule Violations, the Division of Examinations (the “Division”) released a Risk Alert on April 17th related to the Marketing Rule.
- To view the Marketing Rule observations and deficiencies identified by the Division, as well as our conclusion, click here.
- The SEC adopted amendments that affect the way Internet Investment Advisers register, particularly with small Investment Advisers.
- Although the different potential rule adoptions in 2024 address many topics, the SEC has made it a priority to adjust regulatory requirements based on the way technology is changing the industry.
- To view the Rule Amendments and SEC Chair, Gary Gensler’s, and our conclusion, click here.
FINRA Fine:
- FINRA recently announced its first enforcement action related to the use of Social Media Influencers. This stems from FINRA’s Targeted Exam of Firm Practices related to the acquisition of customers through Social Media channels.
- To learn more about what happened and our conclusion, click here.
The Vigilant Team is always happy to schedule a time to chat, feel free to contact us with any questions!
