Regulatory Forum

SEC 2026 Regulatory Agenda (07/07/26)

The SEC published its 2026 Regulatory Agenda on July 7, which reinforces priorities established by Chairman Paul Atkins. In his announcement of the agenda, Atkins restated his commitment to returning the agency to its core mission of protecting investors; facilitating capital formation; and maintaining fair, orderly, and efficient markets, noting the importance of embracing innovation and new technology, revitalizing public markets, and facilitating retail investor participation in private markets while preserving investor protection. We believe the most noteworthy items on this newly announced rulemaking agenda for investment advisers and private funds are the following, and importantly, that there is no sign that the abandoned private fund adviser rules (PFAR) will be resuscitated. While the agenda is instructive, it may be a challenge to push all this rulemaking through before the next election, which could bring a change in leadership and priorities at the SEC.

• Form PF reporting requirements - Increasing the filing threshold from $150 million to $1 billion and reducing reporting burdens for smaller private funds, while laying the groundwork for potential private credit-specific reporting and focusing the Form on requesting information particularly relevant to systemic risk indicators (as proposed in April 2026)

• Pay-to-play rule reform - Potential amendments to reduce compliance burdens related to the controversial rule

• Investment adviser recordkeeping - Modernizing the requirements around the scope of electronic communications and other records requiring maintenance

• Custody rule updates - Improvements and modernization to address crypto assets and remove certain outdated provisions

• Form SHO - Potential amendments to reduce costs and burdens to institutional managers associated with Reg SHO and Form SHO filing requirements

• Digital assets and emerging technologies - Rulemaking and potential exemptions related to the offer, sale, and trading of crypto assets

• Private market access - Facilitating capital formation and access to private offerings, including potential amendments to the definition of accredited investor

• Broker-dealer registration - Reconsideration of the status of "finders" and the scope and exceptions from the term "dealer," which may allow certain activities without triggering broker-dealer registration

Regulatory Forum Q2 2026 Update (7/01/26)

The 2nd quarter of 2026 included several noteworthy developments for private fund managers and other investment advisers. In April, the SEC and CFTC jointly proposed amendments to Form PF that would materially increase the filing threshold from $150 million to $1 billion and reduce or eliminate the filing burden for many smaller private fund managers. The Form PF proposal specifically requested public comment on identifying and reporting private credit funds and whether private-credit-specific reporting should eventually be adopted. Regulators expressly highlighted private credit as an area requiring additional visibility and future policy consideration.

April 21 marked the one-year anniversary of the swearing in of SEC Chairman Paul Atkins, who has clearly set the tone for the agency’s focus as described in his speech on the anniversary date. While SEC enforcement activity during his tenure reflects lower volume than historical peaks, it nonetheless reflects renewed emphasis on high‑impact, fraud‑centric cases targeting investor harm and fiduciary breaches. Significantly, in May, the SEC rescinded its longstanding policy requiring settling defendants in enforcement actions to refrain from publicly denying SEC allegations, materially changing the enforcement landscape for advisers facing SEC investigations.

At the Milken Institute Global Conference on May 4, 2026, Atkins outlined a regulatory agenda centered on market growth and innovation, disclosure modernization, and regulatory efficiency, while reaffirming the SEC's core mission of investor protection, capital formation, and fair, orderly markets. Consistent with this message, the SEC's June 2026 draft Strategic Plan signaled a broader shift toward supporting investment and market development, promoting market efficiency, facilitating compliance, and modernizing the agency's regulatory framework while maintaining appropriate investor safeguards. The SEC is likely to prioritize modernization and simplification of disclosure requirements, retrospective review of existing regulations, greater stakeholder engagement in the rulemaking process, and regulatory approaches designed to reduce unnecessary burdens on market participants while preserving market integrity and investor confidence.

The SEC, CFTC, and NFA continued collaboration efforts. In June, the SEC and CFTC jointly sought public comment regarding: 1) harmonization of derivatives product definitions; 2) swap and security-based swap reporting frameworks; and 3) portfolio margining frameworks, signaling potential future changes in reporting and regulatory requirements for hedge funds, credit funds, and other derivatives managers.

Standish Compliance's Q2 2026 Regulatory Update summarizes noteworthy enforcement activity, rulemaking and guidance.

Webinar: Standish & Debevoise & Plimpton - SEC Exam Readiness & Best Practices (6/23/26)

Standish Compliance and Debevoise & Plimpton hosted a joint webinar focused on how private fund advisers and RIAs can prepare for, navigate, and respond to an SEC examination. SEC exams continue to evolve in tone, scope, and expectations. Drawing on recent exam experience, this session walked through the full lifecycle of an examination—from initial notice through outcomes and remediation—highlighting practical considerations for CCOs, legal teams, and senior management.

Topics include:

• Overview of the SEC Examination Process

• Document Requests & Production

• Interviews & Exam Logistics

• Navigating Exam Outcomes

SPEAKERS

Partners and senior professionals from Debevoise & Plimpton and Standish Compliance, offering perspectives from regulatory, enforcement, and hands-on exam readiness experience.

Charu Chandrasekhar, Partner, Debevoise & Plimpton

Kristin Snyder, Partner, Debevoise & Plimpton

Todd Humphrey, Managing Director, Standish Compliance

Andy Green, Senior Compliance Officer, Standish Compliance

Justin Jennings and Vortex Strategies - MNPI Misappropriated from Romantic Partner (6/23/26)

The SEC charged Justin Jennings and Vortex Strategies LLC with insider trading based on material nonpublic information Jennings allegedly misappropriated from his romantic partner, who worked at a strategic communications and investor relations firm. The SEC alleged Jennings accessed information from her work-issued laptop about M&A, earnings, and other corporate events involving public-company clients and traded in eight public companies, generating approximately $2.7 million in illicit profits; parallel criminal charges were also announced.

Giovanni Pennetta - ERA Misrepresentations & Misappropriation (6/22/26)

The SEC charged Giovanni Pennetta, who managed a private fund through his exempt reporting adviser, Sestante Capital LLC for false representations about his access to shares of private company, Anduril Industries, Inc., to investors who invested over $10.5 million in the private fund NextGenTech Investments LLC (“NextGenTech”). Instead of using the investor funds to purchase Anduril stock, Pennetta allegedly misappropriated over $6.2 million for his personal use and to repay an investor in a separate NextGenTech offering. Pennetta consented to an SEC injunctive order with disgorgement and penalties to be determined at a later date. In a parallel criminal action concerning the same conduct, on March 5, 2026, Pennetta pleaded guilty to one count of wire fraud. Pre-IPO and similar private fund strategies involving single purpose vehicles created to invest in private companies, often technology-related, that are expected to eventually go public are increasingly common. There have been several SEC enforcement actions in recent years involving such vehicles, fraudulent misrepresentations, and misappropriate, which raises SEC scrutiny of such strategies, of which fund managers should be aware.

SEC Risk Alert: Investment Adviser Obligations Related to Economic Conflicts of Interest (6/09/26)

On June 9, 2026, the SEC’s Division of Examinations issued a Risk Alert highlighting that investment advisers must fully and fairly disclose all economic conflicts of interest, particularly those arising from compensation, revenue sharing, and product recommendations. The alert highlighted how examinations continue to reveal deficiencies in these areas, including undisclosed or misleading disclosures about revenue arrangements, inconsistent fee billing practices, and compliance programs that failed to address all types of billing arrangements or monitor fee accuracy.

CCOs should ensure that disclosures are clear, complete, and consistent across all documents and ensure that compliance programs are robust enough to identify, monitor, and address economic conflicts and fee-related issues. Regular reviews and updates to policies, procedures, and client communications are essential to meet fiduciary obligations and regulatory expectations.

While the deficiencies addressed in this risk alert are most relevant for wealth managers, private fund managers should focus on cash management and treasury arrangements and other types of compensation that are applicable to their business for potential conflicts of interest.

Regulatory & Compliance Updates

Regulatory Updates & Developments