On March 30, 2022, the Division of Examinations of the US Securities and Exchange Commission (“SEC”) announced its examination priorities for 2022. This year’s priorities specifically focus on: (i) private funds; (ii) environmental, social and governance investing; (iii) standards of conduct, including Regulation Best Interest, fiduciary duty and Form CRS; (iv) information security and operational
SEC Examinations Division Issues Risk Alert on ESG Products and Services
On April 9, 2021, the Division of Examinations (“Division” or “staff”) of the US Securities and Exchange Commission issued a risk alert that highlighted its observations from its recent examinations of investment advisers, registered investment companies and private funds offering ESG products and services. The risk alert also provides observations of effective practices.
Noting that
SEC’s Division of Examinations 2021 Exam Priorities – Investment Advisers and Investment Companies
On March 3, 2021, the Division of Examinations of the US Securities and Exchange Commission announced its 2021 examination priorities, which, as in previous years, provide insight into its risk-based approach for the year with respect to the entities it examines. In this Legal Update, we discuss the announced priorities applicable to investment advisers
SEC Examinations Division Issues Risk Alert Regarding Digital Assets
On February 26, 2021, the Division of Examinations (“Division”) of the US Securities and Exchange Commission (“SEC”) published a risk alert regarding its continued focus on digital assets (“Risk Alert”). The term “digital asset,” as used in the Risk Alert, refers to an asset that is issued and/or transferred using distributed ledger or blockchain technology
Fintech Companies Face Investment Company Status Challenges
Fintech companies can face a variety of regulatory challenges under the federal securities laws, including one that often receives minimal attention, namely a company’s status as an “investment company” under the US Investment Company Act of 1940 (the “1940 Act”). Fintech companies that possibly meet the threshold definition of “investment company” under the 1940 Act,
SEC Adopts Fund of Funds Arrangements Rule
On October 7, 2020, the US Securities and Exchange Commission (“SEC”) adopted a new rule under the Investment Company Act of 1940 (the “Investment Company Act”) with respect to fund of fund arrangements. New Rule 12d1-4 would permit registered investment companies to invest in other registered investment companies beyond certain statutory limits set forth in
US SEC Announces Flexibility in Comment Period Closing Dates Due to COVID-19 Challenges
The US Securities and Exchange Commission (“SEC”) recently announced that it will not take final action before April 24, 2020, regarding the following five proposed actions, which have comment periods expiring in March, to allow commenters additional time to submit comments. The SEC is concerned that “challenges associated with COVID-19 may delay the completion and
SEC Publishes Final Interpretation of Investment Adviser Standard of Conduct
On June 5, 2019, the SEC published an interpretation of the standard of conduct for investment advisers under the Investment Advisers Act of 1940. The objective of the Proposed and Final Interpretations was to reaffirm and clarify certain aspects of an adviser’s fiduciary duty under Section 206 of the Advisers Act. In the SEC’s view,