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April 2025 – A leadership transition and sweeping reorganization at the SEC are reshaping the regulatory landscape. With Paul Atkins confirmed as Chair and the agency consolidating its regional structure, RIAs should prepare for more centralized oversight and a regulatory tone that favors streamlined compliance.
What changed?
A market-friendly SEC Chair
The U.S. Senate confirmed Paul S. Atkins as the 34th Chair of the Securities and Exchange Commission in early April 2025, by a 52-44 vote. Atkins is no stranger to the SEC, having served as a Commissioner from 2002 to 2008, during which he was known for advocating cost-benefit analysis and limited regulatory intrusion. Atkins has long been a critic of regulatory overreach, emphasizing that rules should be clearly written, economically justified, and focused on protecting investors and promoting capital formation.
At his confirmation hearing, he emphasized the need to reduce burdens, especially for small businesses, and expressed concern about politicized rules, such as those focused on ESG disclosure.
Reorganization of enforcement and exams
The SEC announced a restructuring of its Enforcement and Examinations divisions, consolidating them into three geographic zones: West, Southeast, and Northeast. Each zone is led by a Deputy Director, with an additional deputy director overseeing specialized enforcement units. This restructuring aims to streamline leadership, reduce redundancy, and promote consistent examination and enforcement practices.
What does this mean for RIAs?
Less political, more practical
RIAs should expect a shift toward a more pragmatic regulatory posture. Atkins has signaled support for revisiting or even rolling back rules seen as overly burdensome or misaligned with SEC core mandates, including elements of the SEC’s cybersecurity and climate-related disclosure requirements.
Refocus on core risks
The SEC’s Division of Enforcement appears poised to reemphasize classic securities violations such as insider trading, Ponzi schemes, and misappropriation of client assets. The controversial practice of “regulation by enforcement” is likely to be dialed back in favor of more predictable enforcement activity grounded in existing rule text.
Exam structure streamlined
With the anticipated closures of various SEC offices (ex., Los Angeles and Philadelphia) and a recent buyout of nearly 10% of SEC staff , exams may become more standardized, less frequent, and more virtual. Expect more document-based reviews and potential delays in scheduling.
Delays in new rules
RIAs grappling with recently adopted rules may see relief. For example, the SEC has already delayed implementation of short-sale disclosure requirements and the Commission is facing mounting pressure to revisit others (see a breakdown provided via davispolk.com).
Compliance takeaways
- Stay the course. While deregulatory rhetoric is strong, existing rules remain in force unless formally repealed. Keep compliance programs robust and aligned with fiduciary obligations.
- Watch for updated guidance. The new administration may issue FAQs or no-action relief to soften the edges of complex rulemakings.
- Expect new contact points. With regional oversight now organized by zone, confirm which Deputy Director’s team is responsible for your region.
- Leverage the shift in tone. Use this moment to seek clarity on compliance grey areas. Regulators may be more receptive to questions and proposals.
Atkin’s arrival and the agency’s restructuring signal a period of recalibration at the SEC. While the tone may soften, expectations haven’t. As always, proactive engagement and strong internal controls are your best defense.
How can Bovill Newgate help?
If you’re a small to mid-size RIA, our team can help you better align your business to regulatory compliance obligations. We offer ongoing support options to make sure your compliance function and organization is fully aware of the latest regulatory updates. This will help your team build a strong culture of compliance with minimal disruption and cost.
We can also help you identify challenges and pursue opportunities by conducting regulatory due diligence reviews, evaluations of your compliance environment, and provide your staff with customised training suited to your unique business needs.
If you would like to talk more about how you can strengthen the culture of compliance at your organization, get in touch.
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