Regulatory Roundup for February and March 2025

Welcome to our February and March 2025 Regulatory Roundup, where we provide practical advice on the latest regulatory headlines. We start this issue with some clarifications about performance advertising under the SEC’s Marketing Rule and a new rule that requires Commission approval before the Division of Enforcement can use its full investigative powers. Next, we review the SEC’s changes in its attitude toward crypto assets, indicating a more measured regulatory approach. Similarly, the Division of Corporate Finance relaxes the “general solicitation” Rule 506(c) under Regulation D, allowing issuers more leeway in determining whether investors are truly accredited. Then we see the new U.S. President flexing his executive muscle by requiring a White House review of all new regulations. The Treasury Department backs off the beneficial ownership reporting requirements under the Corporate Transparency Act. We will also discuss how the SEC also took pity on institutional investment managers by granting a one-year exemption from reporting short sale data (Form SHO) – until February 17, 2026. Finally, we discuss a few of the latest SEC settlement orders. Enjoy!

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Regulatory Roundup for August 2024

This month’s big news from the SEC was more piggy-bank breaking fines against 26 broker-dealers, investment advisers and dual registrants for “widespread and longstanding failures” for using unapproved electronic communications methods, known as “off-channel communications.” The SEC’s Marketing Rule (Advisers Act 206(4)-1) enforcement continued with a settlement involving an investment adviser for using hypothetical performance on its public website. Next, in a case undoubtedly meant to serve as a warning for advisers after Minnesota Governor Tim Walz was added to the Democratic presidential ticket, the SEC fined an adviser $95,000 for a $7,150 campaign contribution made in violation of the “look back” provision under the Pay-to-Play Rule (Advisers Act Rule 206(4)-5). New rule making activity was less dramatic as the SEC adopted a final rule increasing the dollar threshold for defining a “qualifying venture capital fund” under the Investment Company Act of 1940 from $10 million to $12 million.

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Regulatory Roundup for June 2024

Welcome to our June Regulatory Roundup, where we provide you with a quick look at the latest regulatory developments. In this edition, we discuss the implications of the Fifth Circuit’s striking down the Private Fund Rules, a survey on how much time advisers are spending on compliance with the Marketing Rule, a case study on how not to show fund performance and an SEC settlement where the obligations of Reg BI and fiduciary duty are blurred. Enjoy!

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