News

February 20, 2025

The investment management landscape is evolving rapidly, with many registered funds turning to alternative strategies and/or beginning to incorporate artificial intelligence. At the same time, cyber threats and other risks are becoming increasingly complex. Should my board add specialized expertise to its list of factors to consider when evaluating succession planning?

February 19, 2025

Both hearings emphasize the intent of congressional Republicans to move forward with a legislative framework to address regulatory gaps for the digital asset industry. Republican members of both Subcommittees noted the importance of working across the various agencies responsible for creating regulatory frameworks to oversee digital assets, as well as understanding where there may be gaps in regulatory authority.

February 18, 2025

In his statement, Acting Chair Uyeda notes the change in leadership at the Commission, adding that “the recent change in the composition of the Commission, and the recent Presidential Memorandum regarding a Regulatory Freeze, bear on the conduct of this litigation.” Acting Chair Uyeda states the Commission will “promptly notify the Court of its determination about its positions in the litigation.”

February 13, 2025

Commissioner Pierce made note that some of these may take time to accomplish because “it took us a long time to get into this mess, and it is going to take us some time to get out of it.” She notes that the Commission will work alongside other regulators to create a regulatory framework that protects investors and while supporting product innovation.

February 12, 2025

In its order, the SEC noted that adviser employees had identified material weaknesses in the firms’ investment models whereby certain employees could alter parameters to the models without approval. The advisers failed to address these deficiencies despite the escalation of the issue by certain employees who proposed solutions to the problem.

February 11, 2025

Panelists will provide an overview of the different available structures: traditional, tender offer, and interval closed-end funds and business development companies (BDCs).

February 10, 2025

SEC Director for Investment Management, Natasha Vij Greiner, will join MFDF President Carolyn McPhillips, for a fireside chat to discuss the Division’s rulemaking priorities and other industry-related topics. Sessions for the conference include panels covering ETFs, AI technology in the fund industry, fund compliance developments, and a legislative and regulatory update, among other topics.

February 6, 2025

On January 10, the Securities and Exchange Commission announced a settlement with Liquidnet, Inc. an operator of multiple alternative trading systems (ATS) for failing to comply with the market access rule and other rules governing ATSs.

February 5, 2025

During the hearing, Scott Bessent voiced his support for tariffs, noting that they were a versatile tool that could be used to remedy unfair trade practices, raise revenues, and provide leverage in trade negotiations. He also voiced his support for an extension of the Tax Cuts and Jobs Act of 2017 (TCJA) provisions, particularly individual tax rates.

February 4, 2025

The SEC Order found that Vanguard made “misleading statements related to capital gains distributions and tax consequences for retail investors who held Vanguard Investor Target Retirement Funds in taxable accounts.” Vanguard was fined a total of $106.41 million for its violations of the Investment Adviser Act and Investment Company Act.

February 3, 2025

Morgan Lewis plans to hold a series of webinars titled “Artificial Intelligence (AI) Boot Camp.” This series will explore the challenges and benefits of AI technology across several issue areas including the use of AI by the U.S. Government, copyright law, privacy, cybersecurity, and algorithmic pricing in anti-trust cases, among other topics.

January 30, 2025

In the FAQs, the SEC staff outline several common questions received from industry participants on the following topics: The Definition of “Income”, “High-Yield”, “Money Market”, and “Tax-Sensitive” terms; Adoption of an 80% Investment Policy; and Tax-Exempt Funds.

January 29, 2025

According to an SEC press release, the Task Force will help “draw clear regulatory lines, provide realistic paths to registration, craft sensible disclosure frameworks, and deploy enforcement resources judiciously.” The task force will provide technical assistance to Members of Congress, coordinate with federal departments and agencies (including the CFTC), as well as state and international regulatory bodies.

January 28, 2025

FDIC regulators requested information from the three largest asset managers Vanguard, BlackRock, and State Street Global Advisers on their passive ownership of bank shares totaling over 10% of shares. In late December, Vanguard entered into an agreement with the FDIC that enhances the agency’s oversight into its holdings. After the announcement of the passivity agreement with Vanguard, the FDIC also raised concerns with BlackRock’s holdings.

January 27, 2025

On Tuesday, January 21 President Donald J. Trump designated Mark Uyeda as Acting Chairman of the Securities and Exchange Commission. Prior to his service as Acting Chair and Commissioner, Uyeda served as Senior Advisor to Chairman Jay Clayton, Counsel to Commissioners Michael Piwowar and Paul Atkins, and Assistant Director and Senior Special Counsel in the Division of Investment Management.

January 23, 2025

Several senior members of the Securities and Exchange Commission staff have announced their intention to depart the agency. With SEC Chair nominee Paul Atkins likely to face a confirmation hearing in the coming weeks, it is unclear when he will enter the building and who will take over as head of the operating divisions.

January 22, 2025

Morgan Lewis will host a webinar titled, “Registered Funds: Trends and Developments.” The program will focus on regulatory issues impacting registered funds.

January 21, 2025

All fund directors are encouraged to participate to allow MFDF to collect sufficient data to serve as a basis for a report for boards on recruitment practices. Importantly, none of the information collected through the survey will be attributed in any way to any board, company, or participant.

January 16, 2025

The program will cover key compliance issues as funds and advisers incorporate AI technology into their business model and investment strategy. Kevin Gleason, Adam Aderton, and Carlo di Florio will discuss compliance considerations as well as the regulatory outlook for AI.

January 15, 2025

In a complaint recently filed in the U.S. District Court for the Eastern District of Kentucky, 18 state attorneys and the DeFi Education Fund allege the Securities and Exchange Commission (SEC) exceeded its regulatory authority over digital assets.