Vigilant Compliance Newsletter

Published on Mar 2nd, 2026 |

Monthly Newsletter

In February, there were important releases including Vigilant Insights, SEC Releases, and FINRA Releases.

Below is a brief overview of what took place in the month of February, and what is approaching for March.

Vigilant Insights:

The Outsourced Compliance industry has experienced a notable rise in Mergers and Acquisitions (M&A), with many Firms being acquired by Private Equity Sponsors or consolidated into Larger Platforms.
Ownership structure directly impacts stability, service philosophy, pricing, and long-term alignment.
As consolidation continues, evaluating whether a Compliance Partner is independent and privately owned, or subject to acquisition-driven objectives, has become an important strategic consideration.
Learn more here.

The landscape of Alternative Investments has expanded significantly over the last decade, with Retail Investors gaining access to asset classes once limited to High-Net-Worth Individuals and Institutional Investors.
These Retail Alternatives provide portfolio diversification and potentially enhanced returns. However, with innovation comes heightened regulatory scrutiny and compliance complexity.
Click here for more on important considerations for Firms launching Retail Alts Funds.

Whether driven by asset growth, a new Fund launch, or changes to a Firm’s business model, understanding when SEC Registration is optional, when it is required, and what follows is critical to staying compliant.
In this article, Vigilant provides insight into the SEC Registration process and what Firms considering Registration need to know.
Continue reading here.

On February 11, 2026, FINRA released a Proposal that could reshape how Broker Dealers use Performance Projections in Marketing Materials.
The Proposal is intended to better align Broker Dealer marketing standards with the SEC’s Marketing Rule for Investment Advisers.
Vigilant Directors, Thayne Gould, MBA, and Will Clark, CIPM, MBA, provided their thoughts on Financial Advisor IQ.
Click here to see their insights.

On February 19, 2026, the SEC announced Proposed Amendments designed to reduce certain operational burdens associated with Form N-PORT reporting while maintaining regulatory transparency.
Vigilant Director, Fred Teufel, CPA, MBA, CGMA, was quoted in Ignites regarding the Proposed Amendments.
For more information on the Proposed Amendments, click here.

The SEC has approved revisions to FINRA’s Rule 3220, increasing the annual gift limit for member Firms and their associated persons.
In addition to increasing the monetary cap, the amended Rule provides FINRA with authority to grant conditional or unconditional exemptions and codifies prior guidance on a range of gifting scenarios.
Vigilant Director, H. Deane Armstrong, CRCP, provided his thoughts and insights on Financial Advisor IQ and our takeaways from that can be found here.

SEC Releases:

SEC Names Rule FAQ

The Names Rule FAQs issued by the SEC provide practical guidance on amendments to Rule 35d-1 under the Investment Company Act of 1940.The Rule is intended to prevent misleading Fund names by requiring certain Funds to align their investments with what their names suggest.
The FAQs do not create new rules but clarify how Funds should interpret and apply the amended requirements in practice.
Explore our Key Takeaways on the FAQs here.

In recent remarks at the ICI Winter Board Meeting, Brian Daly, Director of the SEC’s Division of Investment Management, discussed how AI could reshape the future of Investment Management.
His message focused on modernizing outdated practices, improving investor understanding, and thoughtfully addressing the regulatory challenges that come with emerging technologies.
Learn more here.

On February 25, 2026, the SEC charged an RIA specializing in Private Credit and Loan Investments with violating the Investment Advisers Act of 1940.
The case centers on how the Firm priced loans it sold to investment funds it managed during the early months of the COVID-19 market disruption in 2020.
Read more on the violation here.

FINRA Releases:

On January 30th, 2026, FINRA fined and censured a Broker Dealer for $750,000 for failing to properly supervise and retain business-related text messages sent by Registered Representatives.
The Firm did not reasonably enforce its own policies, leading to supervisory failures.
For more details and takeaways, click here.

The Vigilant Team is always happy to schedule a time to chat, feel free to contact us with any questions!