If 2023 could be condensed into one descriptive narrative, it would be that the U.S. Securities and Exchange Commission (SEC) concluded one of its most active years in proposed and adopted industry-altering regulatory rules for private fund managers that will greatly impact the way they conduct business – now and into the future.
What is truly interesting about this round of changes is that there was not one major crisis or scandal that set the ball rolling. Instead, the SEC’s heightened rulemaking seems to be more about reshaping the U.S. financial markets that, for market participants, means increased obligations, technological infrastructure changes, enhanced regulatory awareness and much, much more. Silver’s CEO, Fizza Khan, remarks on some of these topics in a February SilverVision post.
With so many changes to keep track of and implement, the Silver Compliance Team has broken down the various revised and new rules affecting private fund managers into the following key topics:
Adopted and Proposed Rules:
- SEC Adopts Rule to Increase Transparency into Short Selling and Amendment to CAT NMS Plan for Purposes of Short Sale Data Collection
- SEC Adopts Amendments to Rules Governing Beneficial Ownership Reporting
- SEC Proposes Reforms Relating to Investment Advisers Operating Exclusively Through the Internet
- SEC Proposes Enhanced Safeguarding Rule for Registered Investment Advisers
- Enhanced Reporting of Proxy Votes by Registered Management Investment Companies
- NFA Adopts Digital Asset Commodities Standards and Requirements
- SEC Proposes IA Outsourcing Oversight Framework
- SEC Adopts Amendments to Enhance Private Fund Reporting
- SEC Adopts Private Fund Adviser Rules
- SEC Adopts Rules on Cybersecurity Risk Management, Strategy, Governance, and Incident Disclosure by Public Companies
Current State of Crypto:
- Ripple Ruling on Crypto Rejected by Federal Judge in Terra Case
- Bittrex to Pay $24 Million to Settle with US Securities Regulator
- Crypto Industry Secures Early Victory in Legal Battle with Regulators
- Judge Rules SEC Cannot Appeal Ripple Labs Decision
- New Hampshire Issuer of Crypto Asset Securities that Violated Registration Requirements Enjoined and Ordered to Pay Penalty
- Come in and Register? These Firms Say They Found a SEC-Friendly Crypto Path
- SEC Files 13 Charges Against Binance Entities and Founder Changpeng Zhao
- SEC Charges Coinbase for Operating as an Unregistered Securities Exchange, Broker and Clearing Agency
2024 Exam Priorities:
- Examinations Focused on Additional Areas of Adviser Marketing Rule
- Observations from Examinations of Newly-Registered Advisers
- SEC Division of Examinations Announces 2024 Priorities
New Marketing Rule – Implementation and Status:
- SEC Charges FinTech Investment Adviser Titan for Misrepresenting Hypothetical Performance of Investments and Other Violations
- SEC Staff Extends “Net” Performance Presentation Requirement to Case Studies
Privacy Laws:
- Connecticut and Colorado Privacy Laws Went into Effect on July 1, 2023
- Compliance Deadline under California Consumer Privacy Act
- SEC Proposes Changes to Reg S-P to Enhance Protection of Customer Information
Record Keeping Enforcement Actions:
- SEC Charges 10 Firms with Widespread Recordkeeping Failures
- Trade Groups Push Back on SEC Recordkeeping “Sweep”
As you can see, and have likely experienced through the various changes required within your own businesses, it has been an interesting and busy year for the SEC, which means an interesting and busy year for both Silver and our clients. We have put together a comprehensive report that includes summaries of all of the topics mentioned above, along with our key takeaways, which you can download below.
Please feel free to contact us at [email protected] with any questions or concerns you might have regarding anything mentioned above and how these changes might impact your firm’s compliance program.
Download Full Compliance Year-End Report Here: compliance 2023 report – silver