Iron Road Partners

This week the #SEC adopted amendments to its forms N-PORT and N-CEN liquidity reporting requirements for registered investment companies. The newly adopted amendments increase the N-PORT filing frequency and the N-CEN amendments require additional disclosure about liquidity service providers. The N-PORT amendments apply to all registered funds, while the N-CEN amendments only apply to those subject to Rule 22e-4 ("the Liquidity Rule"). Business Development Companies are not impacted by the new rules. The rule’s implementation date is November 17, 2025 for funds with more than $1b in net assets and May 18, 2026 for funds with less than $1 billion in net assets. #funds #regulation #regfilings #rules You can find the rule release here: https://lnkd.in/eCRMJZqr You can download our note here: https://lnkd.in/eGDN8cMc

Yesterday the SEC settled an action with a vertically integrated #privateequity #realestate manager for not implementing its own policy on benchmarking even though it had fully disclosed its vertical integration practices and even disclosed the actual rates it would charge its properties. Our takeaway is that with policies, sometimes less is more. #verticalintegration #compliance You can find the order here: https://lnkd.in/e9xHSnRa You can download our note here: https://lnkd.in/eGDN8cMc

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Yesterday the #SEC brought off-channel communications cases against 26 financial institutions. One of those concerned an investment adviser that was not also a registered broker dealer. That case appeared to originate with an examination and focused on lack of surveillance and supervision rather than insufficient policies and procedures. We believe this case may have the effect of emboldening other SEC examiners to review off-channel surveillance, which continues to be a challenge for many investment advisers. #compliance #regulation You can find the SEC press release here: https://lnkd.in/eaMbBG26 You can download our note here: https://lnkd.in/gKeKvSTY

This appears to be the next, but not final, wave of off channel cases. https://lnkd.in/e68J2wgz

Last week the #SEC filed a case against an adviser who was marketing hypothetical performance on a website. While the case may seem reasonably straightforward, it does raise questions about whether hypothetical performance can ever be disseminated on websites and when a website posting constitutes advertising.   Our analysis of this case is below. You can find the SEC order here: https://lnkd.in/enXT3d4U You can download our note here: https://lnkd.in/eGDN8cMc #regulation #privatefunds #marketing #advertising

Today the #SEC brought another marketing rule case fining a registrant $430,000 for not having adequate policies and procedures regarding hypothetical performance. You can find the order here: https://lnkd.in/enXT3d4U You can find our marketing rule guidance here: https://lnkd.in/eGDN8cMc

We are hiring early and mid-career professionals who are either new college grads with accounting or business degrees or who have 1 to 3 years of Big 4 or professional services experience located in New York or Denver. We offer a very competitive pay package, access to world class financial services clients and a dynamic environment with rapidly escalating responsibilities. [email protected]

With the Institutional Limited Partners Association (ILPA) releasing its guidance on #NAV loan facilities, we wanted to re-post our #NAV loan #compliance guidance #infographic. Of note to #compliance professionals: the #ILPA guidance highlights two additional practices which could become a focus for the #SEC because they involve potential conflicts of interest: 1) Use of #NAV facilities to improve DPI without providing sufficient disclosure in marketing materials. 2) The undisclosed use of #NAV facilities to make new investments thereby increasing cost and management fees in the post-commitment period. You can find the #ILPA guidance here: https://lnkd.in/eAKJeFJV You can find our infographic here: https://lnkd.in/eGDN8cMc

Complying with the SEC’s Advertising Rule can be a significant challenge because at times, the rule can be both very rigid and very vague. This makes inadvertent mistakes more likely. We have compiled the most common foot faults we have encountered in the field. #SEC #Marketing #Regulation