On September 23, 2024, the SEC announced that it had settled charges against an investment adviser, Atom Investors LP (Atom), for failing to maintain and preserve off-channel communications in breach of its recordkeeping obligations (Order). The violations in the Order are largely unexceptional. Instead, the most notable feature of the Order is that the SEC’s Division of Enforcement (Enforcement) decided not to issue a civil penalty against Atom due to its self-reporting, cooperation and remedial measures. In the accompanying press release, then‑Director of Enforcement Gurbir S. Grewal touted that the resolution “shows that the full benefits of cooperation are available in recordkeeping matters.” He went on to emphasize that Atom’s “self-reporting and prompt remedial efforts weighed heavily in [Enforcement’s] decision to recommend that the Commission not impose a penalty . . . [and that t]his resolution should serve as a model for other investment advisors that are not currently in compliance with federal recordkeeping requirements.” At first glance, the Order may seem like it provides hope to beleaguered investment advisers searching for the right balance of self-reporting, cooperation and remediation to manage their SEC enforcement risks. In reality, however, the facts in the Order are sufficiently nuanced and bespoke to the matter at hand as to render the outcome more underwhelming than touted by the SEC. This article summarizes the key features of the Order and provides insights from experts interviewed by the Hedge Fund Law Report. See “SEC Enforcement Director Grewal Emphasizes Benefits of Cooperation” (Sep. 12, 2024).