Insights & Regulatory Updates
SEC Charges WisdomTree Asset Management with ESG Misstatements and Compliance Failures
The Securities and Exchange Commission (SEC) has charged WisdomTree Asset Management, Inc., a New York-based investment adviser, with failing to adhere to its own investment criteria for funds marketed as incorporating environmental, social, and governance (ESG) factors. The charges stem from the firm’s misstatements and compliance lapses related to the execution of its ESG investment strategies.
Regulatory Compliance in a Whistleblower-Focused Era: How Companies Can Stay Ahead
With regulators intensifying scrutiny, companies today face growing pressure to strengthen their compliance programs, especially in an environment where whistleblower activity is on the rise. Both the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) have sharpened their focus on what they expect from businesses when it comes to managing risk, ensuring ethical behavior, and maintaining transparent operations.
SEC Updates Dollar Threshold for Qualifying Venture Capital Funds: What It Means for the Industry
On August 22, 2024, the Securities and Exchange Commission (SEC) adopted a new rule that updates the dollar threshold for a fund to be considered a "qualifying venture capital fund" under the Investment Company Act of 1940. The rule raises the threshold from $10 million to $12 million in aggregate capital contributions and uncalled committed capital, reflecting inflation adjustments mandated by the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018.
The Aftermath of PFAR’s Demise: Navigating Private Equity Compliance in a New Regulatory Landscape
The recent vacating of the Securities and Exchange Commission’s (SEC) Private Fund Adviser Rules (PFAR) by the Fifth Circuit Court has sent ripples through the private equity (PE) industry. What was initially viewed as a burdensome regulatory overhaul for PE firms is now seen as a moment of reprieve, but also a pivotal point that raises larger questions about the future of SEC oversight. While many private equity firms are breathing a sigh of relief, this regulatory pause is unlikely to signal the end of increased scrutiny from the SEC. In fact, firms may need to prepare for a more nuanced and evolving approach to compliance in the wake of PFAR’s collapse.