April 7, 2022

SEC Announces 2022 Examination Priorities

On March 30, 2022, the SEC’s Division of Examinations (Division) announced its 2022 examination priorities (Examination Priorities). The Division will focus on private funds, environmental, social, and governance (ESG) investing, standards of conduct issues for broker-dealers and registered investment advisers (RIAs), information security and operational resiliency, emerging technologies,…

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February 11, 2022

SEC Proposes Rules and Amendments to Enhance Cybersecurity Preparedness of Investment Advisers and Investment Companies

On February 9, 2022, the SEC approved a notice of proposed rulemaking (Proposal) that would establish new rules governing cybersecurity risk management. In particular, the Proposal would: require advisers and funds to adopt and implement written policies and procedures that are reasonably designed to address cybersecurity risks; require…

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February 1, 2022

SEC Chair Gary Gensler Highlights Opportunities to Strengthen Cybersecurity Practices of Investment Companies and Advisers in Speech

In a recent speech at the Northwestern Pritzker School of Law’s Annual Securities Regulation Institute, SEC Chair Gary Gensler focused on cybersecurity policy at the SEC, including certain potential reforms to rules governing the cybersecurity practices of registered investment companies and advisers. For investment companies, investment…

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November 12, 2021

SEC Division of Examinations Issues Risk Alert on Investment Adviser Fee Calculations

On November 10, 2021, the staff (Staff) of the SEC’s Division of Examinations (Division) issued a Risk Alert (Risk Alert or 2021 Risk Alert) based on observations from the Division’s recently concluded national initiative (Initiative) that focused on advisory fees charged by registered investment advisers. The Staff conducted…

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November 11, 2021

SEC Division of Examinations Staff Issues Risk Alert for Advisers that Provide Electronic Investment Advice

On November 9, 2021, the staff of the SEC’s Division of Examinations (Staff) issued a risk alert highlighting common compliance issues that it observed while conducting examinations of advisers that provide automated digital investment advisory services, also known as robo-advisory services (Alert). During each exam,…

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October 22, 2018

SEC Charges Firm With Deficient Cybersecurity Procedures

On September 26, 2018, the SEC announced that it settled charges against a broker-dealer/investment adviser related to its failures to adopt and implement adequate cybersecurity policies and procedures. The failures were identified in connection with a cyber intrusion that compromised personal information of thousands of customers. The firm agreed to be censured and pay a $1 million penalty.

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August 18, 2017

The SEC’s Webpage entitled “Cybersecurity, the SEC and You”

The SEC has created a landing page for “Cybersecurity” on its website. This webpage provides a general overview of the steps that the SEC is taking to address cyber threats. Importantly, the webpage provides resources concerning the applicable regulations that address cybersecurity practices for the following respective market participants: Investors Issuers / Public Companies Investment Advisers / Investment Companies Brokers and Dealers Self-Regulatory Organizations

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