SEC Regulatory Updates

Stay informed with the latest SEC rulemaking, guidance documents, enforcement actions, and staff statements affecting registered investment advisors.

Risk AlertJune 9, 2026

SEC Issues Risk Alert on Investment Adviser Economic Conflicts of Interest

The SEC Division of Examinations detailed recurring deficiencies in how advisers identify, disclose, and mitigate economic conflicts tied to the products, account types, cash-sweep programs, custodial arrangements, and fee structures they recommend, grounded in the adviser's fiduciary duty and the Compliance Rule.

RulemakingJune 3, 2026

Regulation S-P: Smaller-Entity Compliance Date Arrives (June 3, 2026)

The June 3, 2026 compliance date for "smaller entities" under the 2024 Reg S-P amendments has passed, completing the phased rollout that required larger entities (advisers with $1.5B+ in RAUM) to comply by December 3, 2025.

Staff GuidanceJanuary 15, 2026

SEC Staff Publishes New Marketing Rule FAQs on Model Fees and Promoter Disqualifications

The SEC Division of Investment Management added two new FAQs clarifying that Footnote 590 is not prescriptive regarding model vs. actual fees in performance advertising, and providing conditions under which advisers may compensate promoters subject to SRO final orders.

RulemakingJanuary 2, 2026

FinCEN Delays Investment Adviser AML/CFT Requirements to January 1, 2028

FinCEN issued a final rule postponing the effective date of its AML/CFT program and SAR-filing requirements for registered investment advisers and exempt reporting advisers by two years — from January 1, 2026 to January 1, 2028. There are no 2026 obligations under the rule.

Risk AlertDecember 16, 2025

SEC Issues Risk Alert: Additional Observations on Marketing Rule Compliance

A Division of Examinations risk alert focuses on testimonial/endorsement disclosure failures and third-party ratings due diligence and disclosure. Common deficiencies include missing promoter disclosures, absent written agreements, and undisclosed compensation for ratings.

RulemakingDecember 3, 2025

Regulation S-P Compliance Deadline: What Larger Firms Must Have in Place

As of December 3, 2025, larger entities must comply with amended Reg S-P requirements including incident response programs, 30-day breach notification, service-provider oversight, and enhanced information security safeguards. Smaller entities followed on June 3, 2026.

GuidanceNovember 17, 2025

SEC Division of Examinations Announces Fiscal Year 2026 Examination Priorities

Published November 17, 2025, the FY2026 priorities emphasize fiduciary duty and conflicts of interest, the Compliance Rule, AML, cybersecurity, Regulation S-P and Regulation S-ID, and emerging financial technology including AI-related representations.

RulemakingJune 12, 2025

SEC Withdraws Proposed Safeguarding Rule (Custody Modernization)

As part of a withdrawal of 14 proposed rules on June 12, 2025, the SEC formally withdrew its February 2023 proposed Safeguarding Rule, which would have expanded custody requirements to all client assets. Any future action would require a new proposal.

RulemakingJune 12, 2025

SEC Withdraws Proposed ESG Disclosure Rules for Funds and Advisers

Among the 14 proposals withdrawn on June 12, 2025 was the SEC's 2022 proposed rule on ESG disclosures for investment funds and advisers. The withdrawal means the proposed ESG naming and disclosure framework will not be finalized as drafted.

EnforcementSeptember 9, 2024

SEC Marketing Rule Enforcement: Annual Sweeps Continue

The SEC has brought successive Marketing Rule enforcement sweeps — nine advisers and $850,000 in penalties in September 2023, and nine advisers and roughly $1.24 million in September 2024 — focused on testimonials, performance advertising, and third-party ratings disclosures under Rule 206(4)-1.

EnforcementAugust 14, 2024

SEC Continues Off-Channel Communications Recordkeeping Sweeps

In an August 2024 sweep, the SEC charged 26 firms with recordkeeping failures tied to off-channel business communications, with penalties ranging from $400,000 to $50 million per firm. The recordkeeping sweeps, ongoing since December 2021, have produced billions of dollars in cumulative penalties.

RulemakingMay 16, 2024

SEC Adopts Amendments to Regulation S-P for Data Breach Notification

The SEC adopted amendments to Regulation S-P (Release IA-6604) requiring incident response programs, customer breach notification generally within 30 days, service-provider oversight, and enhanced information security safeguards.

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