Enforcement

SEC Targets False Adviser Filings Used to Create Appearance of Legitimacy

Summary: The SEC charged entities that allegedly made material misrepresentations in Forms ADV to portray themselves as legitimate U.S. investment advisers and attract retail investors. According to the SEC, the entities provided false information in their filings and, in some cases, did not provide requested documentation to support the information reported to the Commission.

Why it Matters: The action underscores the importance of accurate and supportable information in Form ADV filings. It also demonstrates that the SEC continues to use adviser filings as an important part of its efforts to identify potentially fraudulent activity.

Potential Action: Investment advisers should regularly review their Form ADV filings and ensure that information concerning their business, ownership, regulatory status, and advisory activities is accurate, current, and supported by appropriate records.

Read More Here (SEC)

CFTC Takes Enforcement Action Involving Insider Trading of Event Contracts

Summary: The CFTC took enforcement action against an individual for allegedly engaging in insider trading involving event contracts. The Commission alleged that the individual used material nonpublic information to trade before the information became publicly available.

Why it Matters: The action demonstrates that the CFTC is applying its enforcement authority to emerging event-contract markets and remains focused on the misuse of nonpublic information. It also highlights the potential regulatory risks associated with trading based on confidential information.

Potential Action: Firms and individuals participating in derivatives and event-contract markets should maintain appropriate controls around material nonpublic information and understand the restrictions that may apply to trading on confidential information.

Read More Here (CFTC)

Rulemaking

SEC and CFTC Further Extend Form PF Compliance Date

Summary: The SEC and CFTC further extended the compliance date for amendments to Form PF while the agencies continue to consider changes to the private fund reporting framework. The extension provides additional time before the amended requirements become applicable.

Why it Matters: Form PF reporting requirements are directly relevant to private fund advisers and other firms subject to the reporting regime. The continued changes to the compliance timeline reflect the agencies’ ongoing consideration of how private fund information should be collected and reported.

Potential Action: Private fund advisers should continue monitoring developments concerning Form PF and avoid any assumption that previously adopted implementation timelines will remain unchanged. Firms should also assess how future changes could affect their reporting processes and compliance systems.

Read More Here (CFTC)

In the News

SEC Scrutinizes Investment Firms Offering Exposure to Private Companies

Summary: Reuters reported that the SEC is scrutinizing investment firms that use special purpose vehicles to provide investors with exposure to shares of private companies. According to the report, the SEC is asking registered investment advisers to provide evidence that these vehicles hold, or otherwise have legitimate exposure to, the private-company shares they advertise.

Why it Matters: The reported scrutiny highlights the SEC’s focus on whether investment products and marketing materials accurately represent the investments and exposure being offered to investors. This is particularly relevant for advisers involved in private-market investments and structures that provide indirect exposure to private companies.

Potential Action: Advisers using special purpose vehicles or similar structures should ensure that representations concerning underlying investments, ownership, and investor exposure are accurate and supported by appropriate documentation.

Read More Here (Reuters)

Events

SEC Announces Roundtable on Preparations for 24-Hour Trading

Summary: The SEC announced that it will hold a roundtable on September 17, 2026, to discuss preparations for 24-hour trading. The event will examine exchange and broker-dealer readiness, overnight surveillance, clearance and settlement, investor protection, operational resiliency, cybersecurity, market-data continuity, and overnight staffing. The roundtable will also consider the potential effects of expanded trading hours on liquidity and capital formation.

Why it Matters: The roundtable provides insight into the SEC’s consideration of the operational and market-structure issues that could arise as securities trading moves toward more continuous hours. The discussions could also help inform future regulatory and market-structure initiatives related to expanded trading.

Potential Action: Investment advisers and other market participants should monitor developments concerning expanded trading hours, particularly those involving operational resiliency, cybersecurity, market-data continuity, and changes to market infrastructure.

Read More Here (SEC)