On September 5, 2023, the SEC charged five investment firms who failed to comply with requirements regarding safekeeping of client assets, and/or to timely update disclosures relating to audits of financial statements for private fund’s they advise.
On September 5, 2023, the SEC charged private equity firm Prime Group Holdings LLC with “failing to disclose millions of dollars of real estate brokerage fees” that a fund managed by the firm paid to the firm’s affiliate.
On September 1, 2023, six private equity and hedge fund trade groups sued the SEC to block new private fund reforms adopted in August. The suit was filed in the Fifth Circuit Court of Appeals and argued that the SEC overstepped its statutory authority by adopting sweeping changes with these new rules for private funds.
On August 23, 2023, a divided SEC voted to adopt enhanced regulations of private fund advisers and to update the Compliance Rule for all investment advisers.
On August 21, 2023, the SEC charged Titan Global Capital Management USA LLC (“Titan”), a FinTech investment adviser, with violations of the new Marketing Rule, among other violations.
Ten broker-dealers and one dual registrant were charged for off-channel communication failures. The firms will pay $289 mil penalties and were served a cease-and-desist order.
On July 12, 2023, the SEC adopted amendments to Investment Company Act rules regarding money market funds and large private liquidity fund advisers. The amendments will be effective 60 days after publication in the Federal Register.
The SEC has begun requesting more information in exams to assess compliance with the new Marketing Rule.
the SEC’s proposed compliance- and cyber-related rules, including associated dates and links to the full rules.
EXAMS published a risk alert to inform investment advisers, including advisers to private funds, about areas of emphasis for examinations focused on Rule 206(4)-1 of the Investment Advisers Act of 1940.
