Regulatory Forum

SEC-registered advisers face new data protection rules, with deadlines as soon as December 2025.*

📽️ Check out our latest video for a quick breakdown of:
-- What the new rule requires
-- How to prepare for compliance

🗓️ *The Investment Adviser Association recently submitted a letter to the SEC requesting more time to comply. Stay tuned for more updates on the compliance date and what you need to know.

The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) announced today its intention to postpone the effective date of the final rule establishing Anti-Money Laundering/Countering the Financing of Terrorism Program and Suspicious Activity Report Filing Requirements for Registered Investment Advisers and Exempt Reporting Advisers (the IA AML Rule) from January 1, 2026, until January 1, 2028. 

In addition to the announcement of the delayed effective date, FinCEN noted its intention to:

• Issue appropriate exemptive relief delaying the effective date;
• Revisit the substance and scope of the IA AML Rule through a future rulemaking process; and
• Together with the Securities and Exchange Commission (SEC), revisit the joint proposed rule establishing customer identification program rule requirements for investment advisers, Customer Identification Programs for Registered Investment Advisers and Exempt Reporting Advisers.

On July 16, 2025, Willkie Farr & Gallagher LLP and Standish Compliance co-hosted Part One of a webinar series focused on the role of the dual-hatted private fund Chief Compliance Officer (CCO). The session covered practical considerations of the dual-hatted CCO role and strategies for assessing your firm’s compliance program. Panelists include: Kris Agarwal, Partner, Willkie Farr & Gallagher LLP; Kimberly Garber, Founder/Chief Executive Officer, Standish Compliance; Maryellen Maurer, Managing Director, Standish Compliance; and Jennifer Porter, Partner, Willkie Farr & Gallagher LLP.

If you would like a copy of the slides or a link to the recording, please contact us at info@standishcompliance.com. Stay tuned for an invitation to Part Two of the series, coming in September.

The SEC brought settled charges with a $40,000 penalty against a former CCO, Suzanne Ballek, of an RIA for altering records and creating fictitious forms in response to an SEC examination. During the exam, Exam Staff requested the firm’s preclearance policies and procedures as well as documents related to the personal trading activity of one of the firm’s portfolio managers. Before producing these forms, Ballek allegedly modified approximately 170 forms in an attempt to show compliance with the firm’s Code of Ethics and policies and procedures. The SEC noted that the most common alteration she made was changing the dates the forms were signed by the portfolio manager or herself to match the trade date. Apparently, the portfolio manager typically did not fill out and submit the form until after he completed the trade, so many of his forms were signed after the transaction date. For transactions by the portfolio manager for which no form existed, Ballek created a form and included the portfolio manager’s signature on the newly created form without the portfolio manager’s knowledge or authorization. When Exam Staff questioned Ballek about the apparent alterations to the forms, she allegedly falsely claimed that the portfolio manager had filled out the forms incorrectly and that, at the time the forms were submitted to her, she made the changes. This case highlights the importance of completing and reviewing Code of Ethics reporting in a timely manner and why a CCO and compliance staff should never alter or produce backdated documents in an examination. A deficiency letter comment for late reporting is much better than an enforcement action.

Paul Atkins was formally sworn in as the 34th Chairman of the SEC on April 21, 2025, bringing with him a new era focused on investor protection, fair, orderly, and efficient markets, and capital formation. Changes in priorities and personnel quickly followed, as Chairman Atkins noted his intent “to protect investors from fraud, to keep politics out of how our securities laws and regulations are applied, and to advance clear rules of the road that encourage investment in our economy to the benefit of all Americans.” Atkins has highlighted a top priority to “provide a firm regulatory foundation for digital assets through a rational, coherent, and principled approach.” Throughout the quarter, the SEC’s Crypto Task Force continued hosting various roundtable events throughout the quarter, including crypto trading, crypto custody, tokenization, and decentralized finance (DeFi).

Chairman Atkins appointed new Directors of two of the SEC’s six divisions, including Brian Daly, Division of Investment Management, and Jamie Selway, Division of Trading and Markets. The remaining four divisions, Examinations, Enforcement, Corporation Finance, and Economic and Risk Analysis, are all currently led by an Acting Director. Efforts by DOGE to reorganize the federal government led to more than 600 SEC employees opting to voluntarily depart from their positions. The SEC reportedly had decreased headcount by 15% since the beginning of fiscal year (FY) 2025, October 1, 2024, through June 3, 2025. On May 30, Chairman Atkins submitted to Congress the SEC’s FY 2026 flat budget request of $2.149 billion.

No new material rulemaking was proposed or adopted; instead, in June 2025, the SEC withdrew multiple rule proposals that were previously approved under the former Chairman, Gary Gensler, leaving only the Customer Identification Program for RIAs and exempt reporting advisers remaining open. The SEC further extended the compliance date for Form PF amendments and noted that they were reviewing the form based on serious concerns about whether the government's use of the data reported in the form justifies the massive burdens it imposes on private fund managers. The Standish Compliance team continues to track and analyze regulatory developments and their impact on our private fund and other clients. Let us know if you have questions regarding any recent regulatory developments or their application to your firm.

Adviser-controlled SPVs & AIVs can offer flexibility and efficiency—but they can also introduce hidden compliance risks. Check out this video featuring Andy Green, CFA, for things to keep in mind.