We continued our private client engagement efforts this quarter by hosting a breakfast and a lunch session in New York City, where we gathered with compliance leaders and legal professionals from across the advisory space. These sessions remain an important forum for dialogue on regulatory trends and peer insights.

We also joined our partners at Judd Advisory for a client event in London, extending these important conversations to the UK private funds community.

The second quarter marked a notable leadership transition at the SEC, with former Commissioner Paul Atkins officially beginning his tenure as Chairman. His return comes at a pivotal time, as the Commission faces staff attrition and leadership changes across several divisions and offices. Chairman Atkins has already begun reassessing key aspects of the Commission’s recent rulemaking agenda. Notably, we observed the withdrawal of several proposed rules and ongoing signs of regulatory recalibration, prompted by increasing public and industry feedback. Delays and adjustments to rule implementation timelines remain a recurring theme, suggesting a potential shift in both pace and priorities under the Commission’s new leadership.

Following the end of the quarter, FinCEN announced on July 21 its intention to postpone the effective date of the new AML rule for RIAs and ERAs, which was originally set to take effect on January 1, 2026. FinCEN now anticipates delaying the effective date until January 1, 2028. The announcement also stated that FinCEN intends to revisit the substance of the IA AML Rule and, in coordination with the SEC, reexamine the previously proposed rule establishing customer identification program (CIP) requirements for investment advisers. As always, we are closely monitoring these developments and their impact on private fund and alternative investment managers.

Below is a comprehensive summary of the most significant regulatory updates and enforcement actions affecting private fund managers this quarter.

Second Quarter Headlines

Paul Atkins Begins Tenure as Chairman of the SEC
On April 21, Paul S. Atkins was sworn in as the 34th Chairman of the SEC. Notably, the press release announcing his swearing in stated that, as a Commissioner under President Bush, “he advocated for transparency, consistency, and the use of cost-benefit analysis at the agency.” He has continued to make references to cost-benefit analyses in subsequent statements and speeches.

Form PF Compliance Date Extended
On June 11, 2025, the SEC extended the compliance date for the amended Form PF to October 1, 2025. SEC Chairman Paul Atkins stated that he had directed the SEC staff to review Form PF to determine whether the “government’s use of this data justifies the burdens,” and acknowledged the costs imposed on advisers to complete it accurately. Commissioners Pierce and Uyeda echoed Atkins’ concerns in other public statements. SEC Commissioner Caroline Crenshaw stated that the new Form PF would improve data quality, making it more effective for addressing systemic risk. Crenshaw further added that reconsidering the new Form PF by extending the compliance date ignores prior Commission decisions, bypasses proper rulemaking, and coincides with efforts to open markets to retail investors while limiting access to critical risk data.

Multiple Proposed Rules Withdrawn
On June 12, 2025, the SEC withdrew 14 proposed rulemakings, several of which would have impacted private fund advisers. Among the withdrawn proposals were:

• Cybersecurity Risk Management (Proposed on February 9, 2022)
• Enhanced Disclosures About ESG (Proposed on May 25, 2022)
• Outsourcing by Investment Advisers (Proposed on October 26, 2022)
• Safeguarding Advisory Client Assets (Proposed on February 15, 2023)
• Conflicts of Interest Associated with the Use of Predictive Data Analytics (Proposed on July 26, 2023)

Did You Know?

“In the last 10 years alone, private fund assets have almost tripled from $11.6 trillion to $30.9 trillion.”

– Remarks from SEC Chairman Paul Atkins before SEC Speaks – May 19, 2025

Q2 Key Enforcement Actions and News

We left off on March 31 in our 2024 First Quarter Newsletter. Please note all sources are hyperlinked rather than footnoted.

SEC Dismisses Case Against Adviser Tied to Consultant on Creditor Committees
On April 4, the SEC dismissed its civil enforcement action against a debt adviser that it had originally alleged maintained inadequate MNPI controls. The allegations focused on the adviser’s use of a consultant who sat on ad hoc creditor committees and allegedly had extensive conversations with the adviser’s public trading desk after receiving MNPI from one such committee. The original case was announced in December 2024 under the Gensler administration.

Division of Corporation Finance Statements on Stablecoins and Staking
The Division of Corporation Finance issued two statements announcing its view that neither stablecoins, as described in the respective statement, nor Protocol Staking Activities, as described in its statement, involve the offer and sale of securities within the meaning of Section 2(a)(1) of the Securities Act of 1933 or Section 3(a)(10) of the Securities Exchange Act of 1934.

SEC Updates Form PF FAQ
On April 4, the SEC updated its Form PF FAQs. The updated FAQs ranged from how to properly categorize a private equity fund whose fund documents allow the fund to either employ large amounts of leverage or sell assets short, clarified that private funds should still be reported even if they were liquidated during the reporting period, and answered many other Form PF specific FAQs.

SEC Charges Adviser with Failing to Disclose Conflicts of Interest
On April 25, the SEC charged an adviser with allegedly breaching its fiduciary duty by failing to disclose conflicts of interest created by paying incentive compensation to its investment advisor representatives in connection with the rollover of retirement assets to accounts. Notably, the SEC alleged the adviser used “may” in its Form ADV Part 2A to describe compensation that was in fact being paid.

Adviser Charged with Cherry-Picking
On June 3, the SEC charged an adviser and its principal after they allegedly engaged in cherry-picking when they disproportionally allocated certain profitable trades to accounts for affiliates of the adviser and allocated unprofitable trades to other advisory clients. The favored accounts allegedly had a 91.6% win rate and a 2.47% profit while the unfavored accounts had a 31.3% win rate and a profit rate of -1.01%.

Commissioner Peirce Remarks at Conference on Emerging Trends in Asset Management
On June 5, Commissioner Peirce gave remarks at the Third Annual Conference on Emerging Trends in Asset Management. She stated that the SEC should consider how to amend the accredited investor definition to make private markets more accessible to retail investors. She also called for greater regulatory clarity around how crypto assets can be custodied by investment advisers and funds, particularly when using state-chartered trust companies, and encouraged the Commission to consider updates to its custody framework to better address digital assets.

Brian Daly Named Director of Division of Investment Management
On June 13, 2025, the SEC announced that Brian Daly will become the new Director of the Division of Investment Management (“IM”). He officially assumed the role on July 8, 2025. Mr. Daly has decades of experience advising fund managers and sponsors on regulatory compliance at law firms and investment management firms. IM develops regulatory policy for investment advisers, investment companies, and other asset management products, and advises the Commission on whether to propose, adopt, or amend rules and forms under the Investment Advisers Act of 1940 and the Investment Company Act of 1940.

Notable Remarks from Chairman Atkins

• On May 6, Chairman Atkins conducted his first SEC staff “town hall” meeting. He stated it is a “new day” at the SEC and that he believed the “SEC’s long-held reputation has suffered” in the past four years. Additionally, he stated that Offices and Divisions have decreased headcount 15% since the beginning of the current fiscal year and that the departures leave vacancies that in many cases need to be filled. Finally, Atkins stated that he firmly believes in the SEC’s regional office concept.
• On May 16, Atkins spoke on financial market regulation. He stated that “[h]igh-quality economic analysis is an essential part of any SEC rulemaking. It is critical that a rule’s potential benefits and costs be considered in ensuring that it is in the public’s interest. It also helps that it happens to be the law.” He went on to say, “[i]n years past, the Commission has unfortunately demonstrated a tendency to prioritize regulatory expansion over meticulous economic analysis, potentially jeopardizing this delicate balance.”
• On May 19, Paul Atkins gave remarks before SEC speaks in which he stated “I intend to have the Commission address [investment opportunities for retail investors in private markets] and reconsider this 23-year-old practice concerning investments by closed-end funds in private funds.”
• On May 20, Chairman Atkins provided testimony before a House subcommittee. Among other things, he stated in his testimony that “The SEC is returning rulemaking to regular order. Our comment periods will not be artificially short, and the public will have ample time to provide feedback. The SEC will also be sure to take into consideration how rules overlap and how regulatory burdens build, in keeping with our obligation to consider their costs and benefits.”
• On June 3, Chairman Paul Atkins provided testimony on the SEC’s FY 2026 budget request in front of a House subcommittee. His budget request of $2.149B for SEC operations contemplates roughly 4,100 FTEs, a net reduction of 447 FTEs compared to FY25 levels.

Q3 Key Reporting & Disclosure Deadlines

07/30/25	Q2 2025 Quarterly Transaction Reports Due
08/14/25	Form 13F Due for Q2 2025
08/29/25	Quarterly Form PF for Large Hedge Fund Advisers Due; Quarterly Form PF Event Reporting
08/29/25	Annual Form N-PX Due for “Say-on-Pay” Executive Compensation

Key Rulemaking Tracker

HighCamp maintains a Key Rulemaking Tracker with effective dates and pending rule proposals on its website.

Interested in UK Regulatory Updates?

In addition to our coverage of SEC developments, we’re proud to partner with Judd Advisory, a UK-based compliance consultancy. Click here to read Judd’s FCA regulatory updates, UK market developments and to stay informed on key issues affecting UK-regulated firms.

About HighCamp Compliance

HighCamp is a boutique compliance consulting and outsourcing firm helmed by former SEC examiners, CCOs and proven consulting professionals. The firm specializes in regulatory compliance and operational support for SEC-registered private equity, real estate, venture capital, hedge fund, and institutional alternative managers. HighCamp is 100-percent employee owned, with a gender-balanced leadership team. The company has locations in New York City (Metro), Los Angeles, Denver, Dallas, and Bozeman.