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IAA Presents Top Regulatory Priorities for the New Administration

January 31, 2025


The IAA sent a letter to SEC Acting Chairman Mark Uyeda outlining our top recommendations for regulatory and policy actions that should be prioritized in the first days of the new administration. In a related development, yesterday, the SEC extended the compliance date for amendments to Form PF, the confidential reporting form for certain private fund advisers.  

Join us at the IAA’s 2025 Compliance Conference from March 5-7, 2025, to hear directly from senior SEC officials about their regulatory priorities for advisers. 

 

The IAA’s Regulatory Priorities 

The IAA made the following recommendations in our letter to Acting Chair Uyeda: 

  • The compliance date for the new anti-money laundering rule for advisers (AML Rule) should be immediately delayed. In addition, in light of the recent Presidential action authorizing federal agencies to freeze rulemakings pending review, the SEC and the Treasury Department should reopen the comment periods for the AML Rule and the related proposal for advisers to establish customer identification programs (CIPs). We reiterated our position that the scope of the AML/CIP requirements should be significantly tailored to minimize duplication and unnecessary burdens on advisers. 
  • Extend the compliance periods for the following new regulations and work with the IAA during this extended period to provide necessary guidance and, where appropriate, regulatory relief: 
  • Regulation S-P (data privacy and breach notification) amendments  
  • Form PF (reporting by private funds) amendments (subsequently extended as discussed below) 
  • Fund Names Rule amendments 
  • Short Position and Short Activity Reporting (Form SHO) 
  • Treasury Clearing Mandate 
  • Initiate a review of certain existing rules and related guidance, involving thorough industry input. Specifically, we asked the SEC to: (i) immediately withdraw two extremely problematic FAQs relating to presentation of gross/net performance under the Marketing Rule and issue updated guidance and conduct a review of the rule; (ii) increase capital formation and access to investment opportunities (i.e., update the definitions of accredited investor and qualified institutional buyer); (iii) facilitate the use of electronic delivery for required disclosures; (iv) amend the Pay to Play Rule governing political contributions; and (v) withdraw the pending Safeguarding Rule proposal and conduct a retrospective review of the Custody Rule. 
  • Adopt a principles-based and “rightsized” approach to regulating advisers, which includes: (i) approaching regulation in a manner that is strategy neutral and respects the business relationship between professional advisers and their clients; (ii) considering the cumulative economic impact and compliance challenges of new and existing rules on advisers; (iii) amending the agency’s definition of small adviser and considering the SEC’s Asset Management Advisory Committee’s recommendations for smaller advisers; and (iv) adopting policy principles that foster partnership with compliance professionals, tailor exams to registrants, and prioritize the prevention of misconduct and investor harm in examinations and enforcement actions.  

In addressing these and other regulatory issues, we urge policymakers to recognize that the investment adviser industry, a significant economic contributor, is predominantly composed of small businesses. Given this context, we recommended that the SEC take into account reasonable regulatory alternatives and consistently strive to adapt its regulatory expectations, including examination and enforcement, to the unique needs of smaller advisers. 


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