Investment Advisers – Global Investment Law Watch

United States: Hold On! SEC Proposes Updates to Custody Rules

Oct 02 2026

By: Thoreau A. Bartmann, Lance C. Dial, Jon-Luc Dupuy, and Pablo J. Man

The United States Securities and Exchange Commission (SEC) has long been concerned with investment advisers having access to client assets and investment companies’ safeguarding of fund assets. The custodial framework for investment companies dates back to 1941, and Rule 206(4)-2 (the Custody Rule) for investment advisers was adopted in 1962. Despite amendments and SEC staff guidance over the years, critics argue these rules have not been sufficiently flexible to evolve with modern markets, particularly digital assets.

United States: SEC Moves to Open Private Markets to Retail Investors

Oct 01 2026

By: Jon-Luc Dupuy, Timothy C. Foley, Hannah J. Munro, and Jordan A. Knight

On 30 September 2026, the SEC proposed rule amendments advancing Chairman Paul S. Atkins’ “responsible retailization” of private markets, expanding retail access to private-market strategies while adding key investor safeguards.

China: A Real Opening-Up, or Opening-Up With Boundaries? Where Is China’s Capital Market Heading?

Jul 02 2026

By: Chloe Duan and Amigo L. Xie

On 17 June 2026, the Chair of the China Securities Regulatory Commission, Wu Qing, delivered a keynote speech at the Lujiazui Forum, emphasizing China’s continued participation in the global financial markets, as well as its efforts to improve cross-border investment and financing convenience.

United States: Keeping Up Tradition: Director Woodcock’s Signals a Continuation of Recent Enforcement Priorities

May 18 2026

By: Meghan E. Flinn, Hayley Trahan-Liptak, Thoreau A. Bartmann, and Steve G. Topetzes

One week into the role, new Securities Exchange Commission (SEC) Enforcement Director David Woodcock used his first public remarks to reinforce the enforcement tone set by Chairman Atkins: “quality over quantity” and “back to basics.”

United States: What a Relief! Sec Staff Extends Co-Investment Orders to Open-End Funds and Allows Delegation to Board Committee

Apr 28 2026

By: Jon-Luc Dupuy, Jennifer R. Gonzalez, Mark P. Goshko, Jordan A. Knight, Pablo J. Man, Keri E. Riemer, Tristen Rodgers, and George Zornada

On 27 April 2026, the staff (Staff) of the Securities and Exchange Commission (SEC) issued a no-action letter that extends to open-end funds, subject to certain conditions, exemptive relief that permits business development companies (BDCs) and registered closed-end funds to co-invest alongside affiliates in transactions otherwise prohibited under Sections 17(d) and 57(a)(4) of the Investment Company Act of 1940, as amended. This relief opens the door for open-end funds to participate, subject to their 15% liquidity restrictions, in co-investment transactions that were previously unavailable to these funds.

United States: New Year, New Marketing Rule FAQs

Jan 21 2026

By: Lance C. Dial, Jennifer L. Klass, and Pablo J. Man

On 15 January 2026, the SEC staff released two new FAQs addressing issues arising under Advisers Act Rule 206(4)-1 (the Marketing Rule). These FAQs provide important, if technical, guidance to advisers on key provisions of the Marketing Rule and show continued Staff willingness to issue guidance in the form of FAQs.

Europe: ESMA’s Draft RTS on Open-Ended Loan-Originating AIFs-AIFMD II in Practice

Oct 27 2025

By: Susanna Güven and Mathieu Volckrick

On 21 October 2025, the European Securities and Markets Authority (ESMA) published its draft Regulatory Technical Standards (RTS) on open-ended loan-originating alternative investment funds (AIFs). This marks a key step in the implementation of Directive (EU) 2024/927 (AIFMD II), which updates the Alternative Investment Fund Managers Directive (AIFMD) and Undertakings for Collective Investment in Transferable Securities (UCITS) frameworks to strengthen rules on delegation, liquidity risk, supervisory reporting, depositary services, and loan origination.

Australia: Compensation Scheme of Last Resort (CSLR)

Feb 25 2025

By: Jim Bulling and Ben Kneebush

Underfunded From Inception

The operator of CSLR has released the latest actuarial report commissioned on the scheme and the initial estimates of projected levies for 2025 / 26 (3^rd levy period), triggering widespread concern across the financial services industry and immediately prompting the Treasury to announce a comprehensive review of the scheme.

United States: SEC Says Crypto ETPs Are Exam Priority

Oct 24 2024

By: Keri Riemer and Lael Franco

On 21 October 2024, the SEC’s Division of Examinations (Division) published its 2025 Examination Priorities (Priorities) to provide insight into what the Division plans to focus on in the 2025 fiscal year. In addition to other areas of risk highlighted in the Priorities, the Division has advised that it will to continue to monitor – and conduct examinations if deemed appropriate – of registrants offering crypto asset-related services, including spot bitcoin or ether exchange-traded products (ETPs). However, with respect to spot bitcoin or ether ETPs, the Division’s oversight may be limited to the ETPs’ sponsors or managers rather than the ETPs themselves.

United States: SEC’s Division of Examinations Halloween Treat–2025 Priorities

Oct 22 2024

By: Jennifer Klass, Lance Dial, and Pablo Man

In order to discourage investment advisers, broker-dealers and investment companies from engaging in any “tricks,” the SEC’s Division of Examinations has published a treat, in the form of its 2025 Examination Priorities (the Priorities). This publication, an annual event since 2013, provides market participants with insight into what the Division of Examinations will focus on in the coming fiscal year.

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