While not new rules, these observations remind us that SEC examinations prioritize whether actual practices match a firm’s disclosures, policies, and fiduciary duties, rather than its original intentions.
Janaya Moscony | SEC3
Moscony lists questions every adviser should be able to answer today.
SEC3 is monitoring the SEC’s recent inflation adjustment to the “qualified client” thresholds under Advisers Act Rule 205-3, which affects advisers that charge performance-based fees.
Firms, however, must maintain strict adherence to existing requirements until these changes are officially adopted.
The SEC continues to bring parallel civil actions alongside criminal cases, increasing both financial and personal liability risk for advisers.
The agency signaled that it intends to rely less on enforcement to define policy and more on clear, workable rules to reduce regulatory complexity and improve coordination across regulators.
After reviewing a recent case, Janaya Moscony offers lessons learned and explains why this matters for advisers.
The amendments significantly expand expectations around incident response, customer notification, and service provider oversight.