SEC

So far 2022 has been one of the busiest regulatory years we have seen!

Here we leave you with three takeaways for traditional finance and blockchain compliance programs:

1. Follow Gensler & other top regulators on Twitter
2. Basics are important. Have an independent review of your program
3. Understand operational risks & build resiliency. Use technology for duty of loyalty (conflicts), transparency (performance & costs/expenses), and care (conduct standards, ESG)

Blockchain Highlights

• A must-see is the debate on blockchain and DeFi regulatory approach. Click here to watch it!
• The FTX Breach article is an important reminder about the duty to users/customers

2022 SEC Wrap Up

Here is an inventory to help you recap SEC priorities for the testing of your compliance program.

2022 Examination Priorities

Additional Resources

1. Marketing & Biz Dev

• • Risk Alert: Examination Focused on the New Investment Adviser – Marketing Rules

2. Errors

• • Assessing Materiality – Focusing on the Reasonable Investor When Evaluating Errors
  • Statement on Request for Comment on Certain Information Providers Acting as Investment Advisers

3. Cybersecurity
SEC Statements on Cybersecurity

• • Cybersecurity Risk Management Proposal – Commissioner Crenshaw

• • Cybersecurity Risk Management – Commissioner Lee

• • Cybersecurity Risk Management – Commissioner Peirce

• • Cybersecurity Reforms – Commissioner Gensler

4. Standard of Conduct

• • “Investor Protection in a Digital Age”

• • Advisory Fraud – Statement on Jury’s Verdict in Trial of Ambassador Advisors, LLC

• • Chief Compliance Officer Liability

• • Advisory Fraud / Breach of Fiduciary Duties – Statement on Decision in Jury Trial of Dean McDermott

5. ESG Investing Practices

• • Statement on Proposed Rule Requiring Enhanced Disclosure

6. Information & Operational Resilience

• • Informational Security & Operational Resiliency: Investment Adviser MNPI Compliance Issues

• • Fixed Income / Munis: Municipal Advisor Examinations