Vigilant Compliance Newsletter

Published on Jan 30th, 2026 |

Monthly Newsletter

In January, there were important releases including Vigilant Announcements, Vigilant Insights, and SEC Releases.

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

Vigilant Announcements:

Vigilant is thrilled to announce that we have been shortlisted for the 2026 Compliance Service of the Year Award by Alternative Credit Investor for their Alternative Credit North America Awards.
Read more on the shortlisting here.

Vigilant Insights:

The 2026 Compliance Outlook | Vigilant Insights

While many Firms have spent recent years implementing significant new Rules, the focus has now shifted toward operational execution, testing, and documentation.
The 2026 compliance environment reflects heightened attention to data security, conflicts management, marketing practices, the growing complexity of investment products and technologies, and investor protection.
Click here for more on our 2026 Compliance Considerations.

The SEC is signaling a more measured and flexible approach to regulating retail alternative investments, offering Asset Managers room to innovate while maintaining regulatory oversight.
Vigilant Managing Director, Bernadette Murphy, MSL, provided her insights on FundFire surrounding this topic.
For more on Bernadette’s thoughts, click here.

Compliance has become increasingly complex for Investment Advisers, Registered Funds, and Private Fund Managers. For many Firms, particularly those balancing growth with limited internal resources, maintaining a fully in-house compliance function can be challenging.
Outsourcing Compliance is no longer viewed as a stopgap or temporary solution. Instead, it has become a strategic option for Firms seeking expertise, scalability, and consistency.
Learn more about Compliance Outsourcing here.

In light of the recent Regulation S-P (Reg S-P) amendments, the SEC has begun examining certain Firms, underscoring a growing regulatory emphasis on cybersecurity preparedness.
Vigilant Managing Director, Bernadette Murphy, MSL, provided her insights on Dow Jones Risk Journal (a Dow Jones publication alongside The Wall Street Journal).
Read Bernadette’s insights here.

Outsourced Compliance is most effective when it is treated as a strategic extension of a Firm’s operations, not simply a task-based service or regulatory backstop.
As regulatory expectations continue to rise and examinations focus on execution and governance, Firms that thoughtfully integrate Outsourced Compliance into their business are better positioned to manage risk, scale efficiently, and respond to regulatory change.
More on how to best utilize Outsourced Compliance here.

The SEC has issued updated guidance to its Marketing Rule FAQs, aiming to address on-going industry confusion around the use of testimonials and endorsements, as well as the presentation of net performance data in advertisements.
The clarifications are particularly relevant for Advisers navigating paid endorsements and fee-related performance disclosures.
One of Vigilant’s Directors, Maxwell Baker, Esq., shared his insights with FundFire on the SEC’s updated Marketing Compliance FAQs.
Read Max’s takeaways here.

Private Fund Managers continue to face increasing scrutiny around how they market their strategies, performance, and expertise.
One of Vigilant’s Directors, Will Clark, CIPM, MBA, provided his insights on Sondhelm Partners focused on practical considerations for Private Fund Managers with Marketing.
For Will’s insights, click here.

SEC Releases:

On January 20, 2026, the SEC issued an administrative enforcement order against two RIAs (both wholly owned by the same parent corporation) for Custody Rule Violations and Compliance failures.
The RIAs were charged a combined total of $150,000 in civil money penalties.
The action highlights the SEC’s continued emphasis on proper Compliance with the Custody Rule, robust Compliance Programs for RIAs, and transparent Advisory Agreements.
More on the Enforcement Order here.

Marketing Compliance remains a top regulatory priority for the SEC, as reinforced by continued examination focus and recent guidance from the Division of Investment Management.
On January 15, 2026, SEC staff updated its Marketing Compliance FAQs, introducing two new FAQs that provide important clarification in key areas.
Click here for more insight on the New Marketing Compliance FAQs.

On January 7, 2026, the SEC announced a Proposed Rule to modernize and expand the definitions of small entities for Investment Companies, Investment Advisers, and Business Development Companies under the Regulatory Flexibility Act (“RFA”).
The RFA requires federal agencies to analyze regulatory effects on small entities and consider alternatives to minimize economic burden. By revising the thresholds that determine which Firms qualify as “small entities,” the SEC seeks to better reflect current market realities and ensure that more firms are appropriately included in flexibility analyses.
Learn more here.

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