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(Article from Registered Funds Regulatory Update, October 2024)

For more information, please visit the Registered Funds Resource Center.

On July 8, 2024, the SEC’s Office of Information and Regulatory Affairs released the SEC’s Spring 2024 Regulatory Agenda, which outlines the Division of Investment Management’s key regulatory priorities and the anticipated timing. The Agenda features several key investment management-related rule proposals that were previously scheduled to be finalized by April 2024. Those following rule proposals are now scheduled to be finalized by October 2024:

• proposed rules under the Advisers Act requiring advisers to heighten their oversight of third-party service providers;
• proposed ESG-related rules for funds and advisers; and
• proposed rules to enhance fund and investment adviser disclosures and governance relating to cybersecurity risks.

Notably, the Agenda also indicates the SEC’s intent to repropose the following proposals by October 2024:

• rule amendments and/or proposed new rules under the Advisers Act to improve and modernize the regulations around the custody of assets; and
• proposed rules under the Exchange Act and Advisers Act related to broker-dealer and investment adviser conflicts in the use of predictive data analytics, AI, machine learning, and similar technologies in connection with certain investor interactions.

The Agenda also indicates that the SEC now intends to propose the following noteworthy proposals in April 2025:

• rule amendments to enhance registrant disclosure of board and nominee diversity; and
• changes to regulatory requirements relating to registered investment company fees and fee disclosure.

The SEC also intends to repropose the following proposal in April 2025:

• rule amendments for open-end management investment companies regarding liquidity risk management programs and swing pricing.

Finally, the Agenda indicates the following investment management-related rule proposal is scheduled to be finalized by April 2025:

• rule amendments pertaining to shareholder proposals under Rule 14a-8 under the Exchange Act.

Securities and Exchange Commission, Statement on the Spring 2024 Regulatory Agenda, (July 8, 2024), available at: https://www.sec.gov/newsroom/speeches-statements/gensler-2024-spring-regulatory-agenda-070824.