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Rulemaking
Amended Regulation S-P: Enhanced Safeguards and Breach Notification Rules
Summary: The SEC’s amendments to Regulation S-P require advisers, broker-dealers, and other covered institutions to implement written incident-response programs, notify individuals of direct unauthorized data access within 30 days, and strengthen oversight of third-party service providers. The rule broadens the definition of “customer information” and updates disposal and record-keeping standards. The amendments to Regulation S-P became effective on May August 2, 2024, with compliance deadlines of December 3, 2025, for large advisers and June 3, 2026, for smaller advisers.
Why it matters: The changes reflect the SEC’s heightened focus on data privacy, cybersecurity, and vendor risk across the investment-management sector. Private-fund managers handling investor information face new compliance, operational, and disclosure expectations, with potential enforcement consequences for delayed or incomplete notifications.
Potential action: Managers should update their privacy and cybersecurity policies, confirm vendor contracts include safeguard obligations, and establish response workflows that meet the new 30-day breach-notification requirement. Coordination with Form ADV and Reg SP-related documentation is essential to demonstrate robust compliance.
New York LLC Transparency Act Takes Effect January 1
Summary: Effective January 1, the New York LLC Transparency Act introduces new beneficial-ownership reporting obligations for limited liability companies formed in or authorized to do business in the state. Mirroring elements of the federal Corporate Transparency Act (CTA), the law requires LLCs to disclose detailed information on their “beneficial owners” and “company applicants” to the New York Department of State, with filings due on a rolling basis depending on formation or qualification date.
Why it matters: This marks a major shift for New York entities and investment structures that rely on LLCs. The Act expands transparency and recordkeeping expectations, creating new compliance touchpoints for fund sponsors, advisers, and service providers with New York-based vehicles. While modeled on the CTA, the state law introduces additional annual affirmation requirements and narrower exemptions, increasing the risk of administrative penalties or reputational exposure for missed filings.
Potential action: Private-fund managers and advisers should review all LLCs formed or registered in New York, determine which fall within the scope of the Act, and prepare internal processes for beneficial-owner data collection, validation, and reporting. Firms should coordinate filings with existing CTA workflows, update compliance calendars to reflect annual affirmation deadlines, and review governance documentation to ensure alignment with state and federal disclosure regimes.
In The News
Hedge fund hopefuls accept “multistrat pact” to secure capital
Summary: Bloomberg reports more emerging managers are launching with a single anchor client—often a large multi-strategy platform—trading exclusivity and economics for immediate scale and funding stability. The approach can accelerate launches but concentrates on business risk in one relationship.
Why it matters: For RIAs/private-fund managers, anchor-only launches affect governance, key-man/termination exposure, fee splits, and long-term brand optionality; they also change allocator dynamics if capacity is tied up under platform arrangements.
Potential action: If considering a platform-anchor model, stress-test dependency and off-ramp provisions (notice, IP/track-record portability, non-competes); model economics versus independent multi-LP routes; tighten MNPI, trading, and conflict controls required by host platforms; align offering docs and investor comms with any exclusivity constraints.
Read More Here (Bloomberg)
AI-Hungry Grids Keep Clean Power Deals Attractive—Even If D.C. Pulls Back
Summary: Investors say U.S. clean-power assets still offer attractive risk-adjusted returns despite potential federal cutbacks, citing surging electricity demand (AI/data centers), long-dated PPAs, and supportive state policies that underpin cash flows
Why it matters: Even with policy noise, renewables and storage remain core infra themes for private capital; underwriting should emphasize merchant risk, interconnection timelines, and counterparty strength rather than headline policy shifts.
Potential action: Re-underwrite renewables/storage pipelines for PPA tenor and curtailment risk; stress-test merchant tails under weaker subsidies; map state-level incentives and IRR sensitivity to interconnection delays, capex and financing costs.
Read More Here (Reuters)
Baker McKenzie: U.S. Asset Management Spotlight
Summary: Baker McKenzie’s monthly “Asset Management Spotlight” recaps U.S. developments for alternative asset managers, highlighting further extensions of the Form PF compliance date to Oct 1, 2026, momentum to modernize off-channel communications/recordkeeping expectations, and continued enforcement focus on valuation and fees; it also flags context like TXSE approval and state-level disclosure activity.
Why it matters: The update signals a regulatory environment trending toward burden-reduction while maintaining scrutiny on core adviser risks (valuation, fees, disclosures). RIAs/private funds should expect sequencing changes to compliance timelines (e.g., Form PF) without a let-up in baseline exam/enforcement priorities.
Potential action: Re-baseline your regulatory roadmap (Form PF planning to 10/01/2026), refresh books-and-records controls for off-channel communications, and re-test valuation/fee governance (P&Ps, oversight evidence, investor disclosures). Track TXSE and state disclosure moves for knock-on impacts to listings, reporting, and diligence.
Read More Here (INSIGHTPLUS)
Enforcements
U.S. SEC enforcement and Rule Making headlines were limited this week due to the shutdown.
Events
Orical’s Regulatory Breakfast Briefing
Summary: Orical’s Breakfast Briefing on November 13,2025(9:00 AMET;641 Lexington Ave, FL 17; in person or virtual) will explore how operational due diligenceandregulatoryreadinessreinforceeachotheracrossgovernance,controls,and investorcommunications,featuringspecialguestMichaelMerrigan,Founderof Shadmoor Advisors.
Why it matters: LP scrutiny and regulator expectations are converging, so strong ODD now functions as evidence of compliance maturity. Aligning ODD testing with policies, documentation, and monitoring reduces regulatory risk, speeds diligence reviews, and strengthens fund-raising narratives.
Potential action: Register to attend either virtually or in person!
Click Here to Register (Orical)
Hedge Fund Association Events: Connecting the Alternative Investment Community
Summary: The Hedge Fund Association (HFA) hosts a global calendar of events that connect fund managers, allocators, and industry professionals through panels, symposiums, and networking gatherings. These forums provide updates on market trends, regulatory developments, and best operational practices shaping the alternative investment landscape.
Why it matters: HFA events offer valuable touchpoints for relationship-building and market intelligence, allowing investment and compliance leaders to exchange insights on evolving regulation, investor priorities, and industry innovation. For service providers and advisers, they also serve as strategic venues to expand visibility and credibility among active allocators and peers.
Potential action: Monitor upcoming HFA events and participate selectively in those aligned with Orical’s client base and practice areas. Consider sponsorships, panel participation, or networking attendance to enhance brand presence and maintain connectivity within the alternative-investment community.
Read More Here(HFA)
Orical Publications
Orical’s latest Issue in Focus publication, “The Foreign Corrupt Practices Act Remains in Full Force,” clarifies that despite recent headlines, the FCPA remains fully effective and continues to serve as a cornerstone of U.S. anti-corruption enforcement. Although criminal enforcement was briefly paused earlier this year under an executive order, the Department of Justice has now issued updated guidelines emphasizing national security priorities, fair competition, and a renewed focus on serious and strategically significant misconduct.
Read More Here (Orical)
About Orical
Orical is a trusted leader in investment management compliance consulting and compliance technology solutions. Founded by experienced investment management attorneys and former C-Suite executives, Orical has spent over 15 years helping investment advisers, private funds, and asset managers meet regulatory requirements with confidence. Our team delivers practical, business-focused compliance solutions designed to reduce risk, streamline operations, and navigate complex SEC and regulatory challenges.
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