United States (US) – Global Investment Law Watch

United States: Away With Pay to Play?

Sep 03 2026

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

Sometimes, people like to give money to other people. Sometimes, those other people are politicians. Sometimes those politicians are officials of government entities whose funds investment advisers manage in exchange for compensation. There are lots of reasons someone would give money to politicians, but, over the last almost-sixteen years the SEC made it challenging for employees of investment advisers to give politicians money. Today the SEC has just proposed to undo that.

United States: Mid-Year Prediction Market Report: Uncertainty Prevails Amidst Extraordinary Federal Action

Aug 24 2026

Thoreau A. Bartmann, Tamika P. Bent, Sanjeev Bhasker, Todd S. Fishman, Sarah V. Riddell, and Andrew M. Wright

During the first part of 2026, the US Commodity Futures Trading Commission (CFTC or the Commission) has undertaken a sweeping campaign to protect its asserted exclusive jurisdiction over prediction markets—the markets on which event contracts are traded. This effort includes a set of wide-ranging public remarks by its new chairman outlining a broad regulatory program, a set of lawsuits and case filings across the country, and a series of administrative measures, including proposed rulemakings.

United States: Dead Rules Walking: The SEC Removes Two Zombie Rules

Aug 06 2026

By: Thoreau Bartmann and Marguerite Laurent

Key Takeaways

On 4 August 2026 the SEC deleted two long dead requirements from its rulebook. SEC.gov | Investment Company Governance Technical Amendments. Specifically, the SEC deleted a requirement that 75% of a fund board be independent and that the board chair be independent, both provisions that had been struck down by a court in 2006, yet were still in the rulebook twenty years later.

United States: Paper Cut: The SEC “FINALLY” Rethinks E-Delivery

Jul 16 2026

By: Thoreau A. Bartmann and Jennifer L. Klass

On 16 July 2026, the SEC proposed Regulation E-Delivery, a new rule that would make e-delivery the default for how investors receive regulatory information under the federal securities laws. Today, most required information arrives on paper unless the recipient affirmatively consents to electronic delivery. Reg E-Delivery would supersede decades of interpretive guidance built around notice, access, and evidence of delivery, reaching nearly all registrants with a delivery obligation—including advisers, registered funds, broker-dealers, and issuers—and covering nearly all required communications.

Importantly, the rule is optional. It functions as a safe harbor: firms satisfying its conditions are deemed to have fulfilled their delivery obligations, but the rule is not the exclusive means of offering e-delivery.

United States: Supreme Court Scissors up Saba’s Rescission Argument Under Section 47(b) of the 1940 Act

Jun 11 2026

By: Thoreau A. Bartmann, Varu Chilakamarri, Jennifer R. Gonzalez, Charles M. Ponder, and Steve Topetzes

Background

The Supreme Court agreed to hear FS Credit Opportunities Corp., et al. v. Saba Capital Master fund, et al. to resolve whether Section 47(b) of the Investment Company Act of 1940 (Act) allows private parties to bring lawsuits against registered investment companies to rescind contracts (including corporate bylaws) that allegedly violate the Act.

United States: Supreme Court Holds SEC Does Not Need to Prove Pecuniary Loss in Disgorgement

Jun 11 2026

By: Thoreau Bartmann, Meghan Flinn, and Steve Topetzes

On 4 June 2026, the Supreme Court unanimously decided Sripetch v. SEC, ruling that the SEC does not need to prove that victims of a securities law violation suffered pecuniary loss to obtain disgorgement.

United States: Show Me the Money: SEC Risk Alert Highlights Advisers’ Economic Conflict

Jun 11 2026

By: Thoreau Bartmann, Jennifer Klass, Pablo Man, and Keri Riemer

On 9 June 2026 the SEC Division of Examinations published its second risk alert since Atkins became chair. The Risk Alert reminds investment advisers of their fiduciary obligation to disclose economic conflicts of interest that might cause advisers and their financial professionals to recommend certain products, services, or account types. Citing the SEC’s fiduciary interpretation from 2019 and longstanding examination priorities, the Risk Alert identifies the following areas of concern:

United States: SEC’s Updated Qualified Client Standards Take Effect 29 June 2026

May 29 2026

By: Sasha Burstein, Pablo J. Man, Mark T. Heine, Edward T. Dartley, and George Zornada

The United States Securities and Exchange Commission’s (SEC) inflation adjustment to the qualified client thresholds under Rule 205-3 of the Investment Advisers Act of 1940 will become effective on 29 June 2026, and will carry important implications for SEC-registered investment advisers (RIAs) that charge performance-based compensation tied to capital gains or investment appreciation.

United States: The SEC Finally Admits It, The No-Admit/No-Deny Policy Is Gone

May 19 2026

By: Thoreau Bartmann, Meghan Flinn, Ted Kornobis, Hayley Trahan-Liptak, and Neil Smith

On 18 May 2026, the United States Securities and Exchange Commission (SEC) rescinded the rule barring settling defendants from publicly denying the agency’s allegations. The policy, in place since 1972, effectively silenced settling defendants on pain of having their cases reopened. Now, defendants can publicly dispute SEC allegations, including under existing consent judgments.

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.”

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