Banner Two Weeks at SEC for Funds and Advisers: Rethinking Retail, Crypto Custody, Cross Trading, and More

The SEC closed its September 30 fiscal year with a bang, proposing amendments to update the interval fund rule, expand performance fee options for registered funds and advisers, and create new paths to accredited investor qualification — in eight separate rule releases, all under the heading of “responsible retailization.” The next day the SEC followed with proposals for fund and adviser custody of crypto assets. A week later came a long-awaited proposal to expand the assets eligible for cross trading by registered funds. In the same packed period, the SEC staff published guidance on valuation of private assets and a new SEC Exam Handbook. What to make of this? Approaching the halfway mark for the current administration, the agency is clearly in high gear and laser focused on rulemaking for the asset management industry.

Related Sidley Updates

• SEC Division of Examinations Issues Exam Handbook
• Rethinking Retail: SEC Proposes an Alternatives Shakeup
• In SEC Rulemaking, Agency Appears Open to Broad Expansion of Cross Trading by Registered Funds
• SEC Proposes Crypto Custody Rules and Broader Custody Reforms for Registered Investment Advisers and Regulated Funds

SEC Publications

• SEC’s Division of Examinations Announces New Exam Handbook
• Interval Fund Modernization; Expansion of Multiple Share Class to Registered Closed-End Management Investment Companies and Business Development Companies
• Investment Adviser Performance-Based Compensation Modernization
• Potential Designation of Passage of an Accredited Investor Exam to Be Developed by FINRA as Qualifying Natural Persons for Accredited Investor Status
• Investment Company Cross Trading
• Adviser and Regulated Fund Custody Rules; Crypto Custody Rules
• Potential Designation of Passage of an Accredited Investor Exam
• Potential Designation of U.S. Certified Public Accountant License
• Potential Designation of Chartered Financial Analyst Designation
• Potential Designation of Certified Financial Planner Certification
• Potential Designations of Series 79, Series 86, and Series 87 Licenses

Emily Picard, Etherial Edetan, Matthew Dutton, Jillian Leavey, Gaelle Pierre-Louis, and Claudia Woodfield contributed to the Sidley Updates cited.