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    Dec. 18, 2025

Compliance Corner Q1‑2026: Regulatory Filings and Other Considerations Hedge Fund Advisers Should Note in the Coming Quarter

The end of the calendar year is a good time for CCOs to assess how their compliance programs fared over the past 12 months – and to plan ahead for the upcoming year. To assist CCOs in that endeavor, this installment of the Hedge Fund Law Report’s quarterly compliance update by ACA Group consultants Grazia Gatti and Dan Campbell highlights upcoming filing deadlines and reporting requirements fund managers should be aware of during the first quarter of 2026. This article also discusses highlights from the 2026 Examination Priorities from the SEC’s Division of Examinations. See “ACA Compliance Testing Survey: AI and AML Are Now Top Compliance Concerns” (Aug. 28, 2025).

How IOSCO’s Liquidity Management Guidance Conflicts With Market Realities (Part Two of Two)

The International Organization of Securities Commissions (IOSCO) released two detailed publications – a set of revised liquidity risk management recommendations (Report) for open-ended funds and guidance to help fund managers adopt and enforce those recommendations (Guidance) – in an effort to help curb what it sees as one of the most serious threats to the stable and orderly functioning of global private fund and financial markets, i.e., liquidity risk. The Report and Guidance are ostensibly designed to facilitate the adoption of best practices regarding liquidity. Although well-intentioned, IOSCO’s recommendations are largely principles-based and not grounded in the realities of the private funds market, legal experts told the Hedge Fund Law Report. Some of the specific recommendations overlap with existing SEC rulemaking. Others ignore critical factors that can influence fund managers’ decisions or are simply impractical in the fast-paced day-to-day world of investing and trading. This article, the second in a two-part series, delves into specific aspects of IOSCO’s liquidity management tools (LMTs) that would be highly problematic for fund managers to adopt. The first article summarized IOSCO’s revised recommendations and considered whether the SEC is likely to endorse them. For more on liquidity-related guidance and rulemaking, see “FCA Expects Hedge Fund Manages to Focus on Liquidity Risk” (Mar. 3, 2016).

Common Pitfalls and Best Practices When Performing Annual Compliance Reviews

The Alternative Investment Management Association (AIMA) hosted a webinar to help registered investment advisers prepare balanced annual compliance reviews that demonstrate a strong compliance program and avoid unnecessary SEC scrutiny. Among other topics, the webinar discussed who should conduct the annual review, the role of regulatory technology, considerations when documenting the review, common pitfalls that managers face and tips for how to address issues that arise during a review. The webinar, entitled “The Whats, Whys, and Hows of a Comprehensive SEC Adviser Annual Compliance Review,” was moderated by Suzan Rose, senior adviser, government and regulatory affairs at AIMA; and featured the co‑leads of the mock examination team at ACA Group (ACA), Michele Foldenauer and Robert Baker. Prior to joining ACA, Foldenauer worked in the SEC’s Private Funds Unit, and Baker had extensive experience in both the SEC’s Divisions of Examinations and Enforcement. This article summarizes the key takeaways for hedge fund managers from the webinar. See “Testing Is an Integral Component of Compliance Programs” (May 9, 2024); and “Improving Compliance Programs With Gap Analysis and Risk Assessments” (Oct. 26, 2023).

Former Senior SEC Staff Discuss Effective Compliance Programs and Exam and Enforcement Climate

Although there are expectations of a lighter regulatory touch under the Trump administration, CCOs must not let down their guards, according to the former senior SEC attorneys and officials at a PLI program on establishing and running an effective compliance program in the current environment. The speakers discussed the need to prioritize and understand the business; credibility and culture; policies and procedures; training; strategies for operating with limited resources; handling SEC staff inquiries; compliance program updates; how artificial intelligence is being incorporated into compliance functions; and the current examination and enforcement climates. This article synthesizes the key takeaways from the program, which was moderated by Osman Nawaz, partner at Gibson, Dunn & Crutcher LLP and former Senior Officer and Chief of the Complex Financial Instruments Unit in the SEC’s Division of Enforcement. See our three-part series on the first 100 days as GC/CCO: “Preparing for the Role and Setting the Tone” (Apr. 29, 2021); “Developing Knowledge and Forging Key Relationships” (May 6, 2021); and “Managing Daily Work, Performing Risk Assessments and Looking Ahead” (May 13, 2021).

SEC Order Reminds Advisers of Fundamental Obligations Under Marketing and Compliance Rules

Notwithstanding expectations of a lighter enforcement touch under SEC Chair Paul Atkins, the SEC enforcement proceeding against a registered investment adviser suggests the agency will continue to hold advisers accountable for strict compliance with its rules. The adviser allegedly made unsubstantiated claims on its website to the effect that it “refused all conflicts of interest,” even though it acknowledged having conflicts in other documents. The SEC claimed the adviser violated the Marketing Rule; failed to maintain required books and records; conducted inadequate annual compliance reviews; and failed to follow its policies and procedures. This article discusses the resolution, which is also an important reminder that substantive violations often lead to associated compliance-related charges. See “Acting SEC and CFTC Chairs Emphasize Getting ‘Back to the Basics’” (May 8, 2025).

Former SEC Official to Chair WilmerHale’s Investment Management Practice

Natasha Vij Greiner, former Director of the SEC’s Division of Investment Management, will join WilmerHale as chair of its investment management practice in Washington, D.C. Greiner brings more than 20 years of distinguished experience at the SEC, including senior leadership roles across four agency divisions. For insights from WilmerHale attorneys, see “CFTC Finalizes Scaled-Back Amendments to Regulation 4.7” (Feb. 13, 2025); “Inadequate MNPI Policies Cost CLO and Hedge Fund Adviser $1.8 Million” (Nov. 21, 2024); and “Evaluating the CFTC’s Actions in 2023 and the Outlook for 2024” (Jun. 20, 2024).

HFLR Will Resume Regular Publication in January

The Hedge Fund Law Report will not publish during the upcoming holiday period and will resume its normal biweekly publication schedule during the week starting January 12, 2026. Have a safe and happy holiday season.

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Women to Watch: Contributions, Achievements and Observations of Outstanding Female Professionals

To mark International Women’s Day, women editors and reporters at ION Analytics interviewed outstanding women in the industries and jurisdictions we cover. In this part, Law Report Group editors Jill Abitbol, Robin L. Barton and Megan Zwiebel profile notable women in data privacy, cybersecurity, private funds and anti-corruption law, including Anne-Gabrielle Haie, Jessica Lee, Micaela McMurrough, Laura Perkins, Amanda Raad, Madelyn Calabrese, Ranah Esmaili and Genna Garver. Enjoy reading their inspiring remarks here.