As we reach the midpoint of 2024, the SEC’s enforcement actions continue to shape the private funds industry. From the continuing off-channel recordkeeping sweep to heightened scrutiny on AI claims, fiduciary obligations of fund managers, and insider trading, the SEC is as vigilant as ever. Compounding these efforts are significant variables, such as the upcoming presidential election and the recent Fifth Circuit ruling striking down the SEC’s Private Fund Adviser Rules. Key developments include:
- Private Fund Adviser Rules Invalidated: Will the SEC double down on cases to highlight problematic practices?
- Off-Channel Recordkeeping: Firms face penalties for improper use of personal messaging apps.
- AI-washing: The SEC targets false claims about AI capabilities.
- Pay-to-Play Rule: Upcoming elections may highlight enforcement on political contributions.
- Insider Trading: New case expands the scope of insider trading laws.
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