Vigilant Monthly Newsletter | May 2023
Monthly Newsletter
In May, we saw SEC/FINRA Releases and News and Alerts throughout the Industry.
Below is a brief overview of what took place in the month of May, and what is approaching for June.
New Rules, Regulations, and Guidance
Upcoming Filings:
- 06/12/23 – Form N-MFP
- 06/30/23 – Form 13G Monthly
- 06/30/23 – Global Investment Performance Solutions (GIPS) Notification
- 06/30/23 – Private Fund of Funds Financial Statements
- 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:
- 06/05/23 – Protecting Older Americans from Financial Fraud
- 06/14/23 – Small Business Capital Formation Advisory Committee Meeting
- 06/14/23 – Compliance Matters
- To see upcoming 2023 SEC Meetings and Public Appearances click HERE!
Materials
SEC Releases:
SEC Adopts Amendments to Form PF
- As “hinted” by SEC Chairman, Gary Gensler, at the MFA Conference recently, the SEC announced on May 3rd that the Proposed Amendments to Form PF have been adopted.
- To learn more about who this applies to and the final amendments, click here.
First Charges Ever Filed by the SEC for Liquidity Requirement Violations
- On May 5th, the SEC charged a Firm $476,000 in disgorgement and civil penalties for aiding and abetting Liquidity Rule Violations by a Mutual Fund under its advisement.
- To learn more about what happened and our conclusion, click here.
SEC Continues Heightened Focus on Recordkeeping Failures
- On May 11th, two Broker Dealer Firms were charged by the SEC for “widespread and longstanding failures” relating to SEC recordkeeping requirements, specifically those related to electronic communications.
- To view what was discovered, 2 key takeaways, and our conclusion, click here.
Cybersecurity Investor Protection | SEC Commissioner Update
- SEC Commissioner, Jaime Lizarrage, spoke at the Digital Directs Network on May 16th. He discussed how the SEC is pushing for all market actors to strengthen their cybersecurity protocols and actions.
- To view the key areas he discussed, click here.
Private Fund Compliance Failures Bring SEC Charges for RIA
- A New York RIA was charged $275,000 by the SEC on May 24th for Compliance failures related to their valuation of Private Funds.
- To view what was discovered and our conclusion, click here.
FINRA:
FINRA Expels First Broker Dealer Under Regulation BI
- A New York Firm was expelled by FINRA on May 12th related to multiple Regulation BI violations.
- To learn more about what happened and our conclusion, click here.
News and Alerts:
SEC Chairman’s Agenda Has No Intention Of Stopping
- SEC Chairman, Gary Gensler, discussed multiple topics in a recent interview with InvestmentNews.
- To learn more about what he discussed and our conclusion, click here.
Gensler Defends SEC Private Fund Proposals at MFA Forum
- SEC Chairman, Gary Gensler, spoke in front of the Managed Funds Association (“MFA”) about the reasoning behind the multiple SEC proposals affecting Private Fund Advisors.
- To learn more about what he discussed and our conclusion, click here.
SEC Marketing Rule Enforcements Appear Inevitable
- Recently, the Investment Adviser Association (“IAA”) has learned of multiple deficiencies in the implementation of the Marketing Rule by member Firms that will likely lead to SEC Enforcement Actions in 2023.
- To view what was discussed and our conclusion, click here.
ESG Issues Remain Major Focus for SEC Investigations
- The SEC has yet to finalize their proposals related to ESG disclosure. However, Firms that advertise ESG in their materials should be prepared to provide supporting documentation during Examination.
- To view the recent update by the SEC 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!
