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NEWSLETTER: The new year and new administration have already seen a shift in tone in the financial world, with a number of regulatory changes on the way.
In December, we saw the SEC settle with seven RIAs for failing to file annual reports on Form PF, incurring a total of $790,000 in penalties. Given that filing season is upon us, now is the time to renew your focus on accuracy and timeliness.
Elsewhere, as we look towards the future, the SEC’s annual examination priorities is the gift that keeps on giving. Between some of the usual topics, and some new areas – AI being a notable new entrant, we take a look at where time and effort is best spent to be prepared for the inevitable knock at the door.
Throughout the last year, the SEC charged more than a dozen RIAs for marketing rule violations, including advertising hypothetical performance without the proper policies and procedures in place. It found many firms using unsubstantiated statements and misleading performance data. Now is the time to set yourself up for a successful year by making the most of audits and reviews to cover all bases.
Finally, recordkeeping violations and investor protection are once again given airtime. We’ve seen the SEC issue over $600 million in civil penalties to more than 70 RIAs in 2024 for failures, including off-channel communications. As the regulator continues to crack down, it’s important to consistently review to ensure you’re maintaining all required books and records.
If you need any help, guidance, or reassurance that you’re doing the right thing – let us know.
Rebecca Thorpe, Global Head of Regulatory Consulting
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