Vigilant Compliance Newsletter | September 2023
Monthly Newsletter
In September, we saw SEC Charges, new Adopted Rules, and Insights from Vigilant.
Below is a brief overview of what took place in the month of September, and what is approaching for October.
New Rules, Regulations, and Guidance
Upcoming Filings:
- 10/06/23 – Form N-MFP
- 10/10/23 – Form 13H Quarterly
- 10/10/23 – Form 13G Monthly
- 10/15/23 – Form PF Liquidity Fund Quarterly
- 10/31/23 – AIFMD Annex IV MIFIDPRU: Application for use of the Group Capital Test
- To stay up to date with the SEC Filing Deadlines in 2023, click HERE to view Vigilant’s Filing calendar.
Events & Public Appearances by Officials:
- 10/03/23 – Your TSP Account – What To Think About When Nearing Retirement Or Considering Leaving The Government
- 10/04/23 – SEC-NASAA-Georgia Secretary Of State Joint Investor Roundtable
- 10/05/23 – Closed Meeting
- 10/25/23 – Securities Enforcement Forum 2023
- To see upcoming 2023 SEC Meetings and Public Appearances click HERE!
Materials
Vigilant Insights:
Private Equity Firms Should Consider Outsourced Compliance
- Considering the new Private Fund Rule, we discussed three reasons why Private Equity Advisers and Funds should consider outsourced compliance and the importance of it.
- To learn more about the importance of Compliance, click here.
- With the SEC’s first enforcement action related to the Marketing Rule recently announced and 9 Marketing Rule Violations (announced on September 11th), it is important for Firms to ensure their compliance departments are properly supervising marketing materials.
- To view what marketing materials Vigilant has seen during Examinations and how we handle Advertising and Marketing Review, click here.
SEC Releases:
- On September 20th, the SEC adopted Rule enhancements to prevent misleading or deceptive Investment Fund Names.
- To view the effective date on the new Rule, who this is applicable to, 7 key changes under the new Rule, and our conclusion and industry takeaways, click here.
- The SEC Division of Examinations (“Division” or “EXAMS”) recently published a Risk Alert to give additional information about the Risk-Based Approach the Division takes for selecting Registered Investment Advisers (“RIAs”) to examine and which risk areas to focus on.
- To view how the Division selects RIAs to examine, focus areas selected during Examinations, common SEC Request List items, and our conclusion, click here.
SEC Charges:
- On September 25th, an RIA Firm was charged $1 million for material misstatements and omissions in marketing materials. However, this is also related to the use of hypothetical performance.
- To learn more about what happened and our conclusion, click here.
- Recently, the SEC charged a Private Equity Registered Investment Adviser (“RIA”) more than $1.6 Million for failures involving their fiduciary duty to Funds being managed.
- To learn more about what happened and our conclusion, click here.
- A New York-based RIA was charged by the SEC for failing to adopt and implement written compliance policies and procedures, conduct an annual review of its compliance program, and establish, maintain, and enforce a written code of ethics.
- To learn more about what happened and our conclusion, click here.
- The SEC has filed charges in U.S. District Court against a Firm and their Parent Company for allegedly making materially false and misleading statements and omissions regarding information barriers to prevent the misuse of sensitive customer information.
- To learn more about what happened and our conclusion, click here.
- On September 11th, the SEC announced charges against nine Registered Investment Advisers (“RIAs”) for violations of the Marketing Rule.
- All involved Firms had violations involving hypothetical performance, and two of the Firms also had recordkeeping failures.
- To view our Marketing Rule reminders and learn more about what happened and our conclusion, click here.
- On September 5th, the SEC announced charges against five investment advisers for Custody Rule violations.
- To learn more about who this affects, what happened, and our conclusion, click here.
News and Alerts:
- The SEC recently adopted the new Private Fund Rule for Private Funds and Private Fund Advisers.
- Their release reported that the enforcement dates would rely on the rule’s publication in the Federal Register. Upon recent publication on September 14th, the enforcement dates are now set and Firms should continue to prepare.
- To view the Compliance date reminders 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!
