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    Jul. 2, 2026

Disgorgement After Sripetch and the Future of SEC Enforcement for Fund Managers

The landmark decision by the U.S. Supreme Court (Court) in Sripetch v. SEC represents the latest chapter in the Court’s ongoing examination of the SEC’s disgorgement authority. On June 4, 2026, the Court unanimously held that the SEC can seek disgorgement as a remedy for securities fraud without showing that the investors or “victims” suffered pecuniary harm. Although the decision is unquestionably a victory for the SEC, it is not the sweeping endorsement of the Commission’s disgorgement powers that some headlines may suggest. This guest article by Nelson Mullins partner Benjamin Lajoie discusses Sripetch, explores how the decision fits within the evolving securities enforcement landscape and explains why it is important for fund managers to consider the decision when evaluating enforcement risk, responding to investigations and making strategic decisions concerning settlement and litigation. See “Recalibrating Securities Enforcement and Risk: What Fund Managers Should Know About the Shifting Legal Landscape” (Jan. 15, 2026).

CFTC Announces New Cooperation Policy Aimed at Clarifying Path to Declinations (Part One of Two)

On May 19, 2026, the CFTC’s Division of Enforcement (Division) announced a new policy (Policy) regarding cooperation on the part of individuals and organizations that might face an enforcement action. The Policy aims to clarify the Division’s stance on cooperation, taking a more consistent approach and fostering greater understanding of the potential consequences of self-reporting, remediation, restitution and/or disgorgement. It sets forth conditions which, if met in full, will – in the absence of aggravating factors – result in the Division not recommending that an enforcement action be pursued. The Policy supersedes the CFTC’s February 2025 Enforcement Advisory. This first article in a two-part series summarizes the Policy and its cooperation safe harbors. The second article will compare it to the superseded February 2025 Enforcement Advisory and other agencies’ cooperation policies; assess its potential impact; and provide practical takeaways. For analysis of the February 2025 Enforcement Advisory, see “CFTC Advisory on Self-Reporting, Cooperation and Remediation Overhauls Years of Guidance” (Mar. 27, 2025).

How CCOs Can Make the Case for Compliance in Trump 2.0

At a March 2026 Practising Law Institute panel, experts discussed the changes in U.S. anti-corruption enforcement and offered guidance on how CCOs can defend compliance budgets and maintain compliance programs and culture with fewer resources. In particular, they recommend highlighting the business advantages compliance can provide and how to make use of dual-hatted employees and agentic artificial intelligence to drive efficiencies. The panel was moderated by Patrick Stokes, partner at Gibson Dunn, and included Kathryn Atkinson, a member of Miller & Chevalier; Jeanne Cook, an associate GC at Meta; and Melissa Farrar, partner at Gibson Dunn. This article sums up their insights. See “2026 Securities Enforcement Forum Panel Discusses Current Enforcement Climate” (Mar. 12, 2026).

IOSCO Issues Final Report on Valuing Open-End Funds

On June 1, 2026, the International Organization of Securities Commissions (IOSCO) issued its final Recommendations on Valuing Collective Investment Schemes (Report). The Report consolidates, updates and supersedes IOSCO’s 2007 Principles for the Valuation of Hedge Fund Portfolios and 2013 Principles for the Valuation of Collective Investment Schemes (CIS). It does not, however, change the regulatory perimeter of E.U. member jurisdictions. The update was driven by IOSCO’s desire to account for investment funds’ increasing holdings of private and illiquid assets and retail investors’ exposure to such assets, as well as valuation issues it observed during recent periods of market volatility. The Report aims to “facilitate fair and consistent asset valuation across CIS, strengthen governance, oversight, and accountability of the valuation process, promote transparency and disclosure to investors and regulators, and mitigate potential systemic risk arising from inaccurate/inconsistent valuations.” This article parses the Report. See our two-part series on IOSCO’s revised liquidity management guidance: “Revised Liquidity Management Recommendations for Private Funds” (Dec. 4, 2025); and “How Guidance Conflicts With Market Realities” (Dec. 18, 2025).

SEC Charges Attorneys From Major Law Firms and Others in Insider Trading Scheme

On May 6, 2026, the SEC announced securities fraud charges against 21 individuals in a wide-ranging insider trading scheme that spanned at least eight years. At the heart of the scheme are two lawyers, including one who allegedly misappropriated material nonpublic information (MNPI) about pending acquisitions from two top-tier law firms where he worked. They allegedly recruited a third attorney to obtain MNPI from the firms where he worked. They allegedly disseminated the MNPI through a web of familial, personal and professional relationships to individuals, who traded on the information and then paid them and other defendants kickbacks from their illicit profits. This article details the SEC’s allegations, as well as related DOJ charges. See “SEC Charges Second Broker Who Traded on Information Stolen by a Boyfriend From Girlfriend’s Computer” (May 7, 2026).

Former GC/CCO Joins Kleinberg Kaplan

Norris Nissim has joined Kleinberg Kaplan as a partner in its private funds and investment management practice. Drawing on nearly 20 years’ experience as a private fund manager GC/CCO, he advises clients such as private fund sponsors, emerging managers, family offices and institutional investors on a wide range of issues. For insights from other Kleinberg partners, see our two-part series on the retailization of private funds: “Incremental Changes Signal SEC Support” (Aug. 14, 2025); and “Practical Consequences” (Aug. 28, 2025); as well as “U.S. Treasury Initiates Survey of Foreign Securities Holdings” (Feb. 24, 2022).

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