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    Oct. 8, 2026

Compliance Corner Q4‑2026: Regulatory Filings and Other Considerations Hedge Fund Managers Should Note in the Coming Quarter

The final quarter of the calendar year is a busy time for hedge fund managers and their CCOs. They may be conducting or finalizing annual compliance reviews, making required regulatory filings, handling year-end redemptions, making various tax elections and conducting employee performance reviews. As a result, it is never too soon to start planning for the tasks that lie ahead in the next few months. This latest installment of the Hedge Fund Law Report’s quarterly compliance update highlights upcoming filing deadlines and reporting requirements fund managers should be aware of during the fourth quarter of 2026. This guest article by ACA Group consultants Grazia Gatti, Jeremy Heckerling, Elli Kavros and Ken Carroll also includes information on the extension of the Form PF compliance date, analysis of a recent SEC enforcement action involving fraud allegations against a private fund adviser, discussion of recent developments in prediction markets and a mention of the SEC’s proposed recission of the Pay to Play Rule. In addition, the 2026 regulatory filings calendar prepared by ACA Group, which is designed to help hedge fund managers stay on top of important filing obligations, is available here. For more from ACA Group, see “SEC Registration Issues for Non‑U.S. Fund Managers” (Sep. 24, 2026); and “Survey Finds AI Is Top Compliance Concern” (Sep. 24, 2026).

Present and Former SEC Attorneys Discuss Examination and Compliance Issues

The SEC Division of Examinations under the Trump administration has maintained a consistent pace of investment adviser examinations, with continuing focus on core issues, including policies, procedures and conflicts of interest, according to the speakers at a PLI program on compliance and examination issues for investment advisers. There has also been no let-up in examinations of private fund advisers. In addition to discussing recent exam trends, the speakers offered guidance on how advisers can best prepare for SEC examinations, the exam selection process, how advisers can navigate each stage of an SEC exam, responding to deficiency letters, referrals to the SEC Division of Enforcement and compliance concerns arising out of the widespread adoption of artificial intelligence tools. This article discusses the key takeaways from the program. See “SEC 2026 Exam Priorities: Retail Investor Protection In, Crypto Out” (Feb. 12, 2026).

Relaunch of Net Zero Asset Managers Initiative Seeks to Avoid Legal and Political Backlash

In 2026, the Net Zero Asset Managers Initiative (Initiative) announced its official relaunch, issuing an updated commitment statement to which it claimed more than 250 asset managers as signatories. Originally launched in December 2020, the Initiative represents an international effort to invest in accordance with environmental, social and governance (ESG) principles. The environmental objectives are explicitly presented as being consistent with the Paris Agreement’s overarching objective of achieving net zero greenhouse gas emissions. Although the rebooted Initiative is broadly similar in spirit to the original, it has introduced changes in response to legal and political pressures, according to legal experts interviewed by the Hedge Fund Law Report. For example, the new version encourages fund managers to use their judgment and to pursue ESG investing in a manner that does not contravene their fiduciary duty to clients, the experts said. This article summarizes the Initiative; compares it to the original initiative; considers the possibility for further political and legal pushback; and offers practical takeaways for fund managers, with expert legal commentary. See our two-part series on the original initiative: “What It Is and What It Requires” (Feb. 3, 2022); and “How to Make the Commitment” (Feb. 10, 2022).

SEC Rescinds “No Deny” Policy As a Condition of Settled Enforcement Actions

On May 18, 2026, the SEC issued a new rule (Rule) formally rescinding its requirement that defendants settling enforcement actions agree not to publicly deny SEC allegations in the complaint or administrative order. First implemented in 1972, Rule 202.5(e) of the SEC’s informal rules and procedures – colloquially known as the SEC’s “gag rule” – has guided SEC enforcement practices for more than 50 years and has been an obstacle for fund managers facing SEC scrutiny. Although the rescission may sound like a concession to the private funds industry, a party’s violation of “no deny” after a settlement has not actually triggered the reopening of civil or administrative proceedings, noted legal experts interviewed by the Hedge Fund Law Report. Nor does adoption of the Rule necessarily mean that settlement negotiations with the SEC will be simplified or settled on terms more favorable to defendants. This article summarizes the Rule; presents the contrasting views of Commissioner Hester M. Peirce and former SEC Chair Gary S. Gensler; examines whether it is possible or advisable to revisit settled enforcement actions; considers the relationship between the Rule and the Powell v. U.S. case decided by the U.S. Court of Appeals for the Ninth Circuit; and offers practical takeaways for fund managers, with expert legal commentary. See “Former SEC and CFTC Officials Unpack the 2026 Enforcement Landscape” (Sep. 10, 2026).

SEC Obtains $1.2‑Million Judgment Against Purported Private Fund Adviser

Form ADV operates largely on trust. An adviser that claims exempt reporting adviser (ERA) status does not undergo the registration review process, and information reported on Form ADV becomes public without a merits-based prefiling review. The accuracy of a Form ADV is instead policed after its filing through the SEC’s authority to examine an adviser’s books and records and, if necessary, through enforcement litigation. A default judgment entered on August 3, 2026, illustrates the limits and reach of those mechanisms when an ERA cannot be located. The U.S. District Court for the District of Columbia permanently enjoined a purported ERA from violating the Books and Records Rule and the reporting provisions of the Investment Advisers Act of 1940; barred it from filing a Form ADV as an ERA; and ordered it to pay a $1,152,316 civil penalty. The SEC alleged that a Form ADV filed by the so-called ERA described an illusory advisory business – a Wall Street office occupied by someone else, a claimed public company registration that the Commission could not find and two private funds that appeared in no other filing. This article analyzes the allegations, charges and the terms of the final judgment. See “SEC Sanctions Adviser for Undisclosed Conflicts and Misleading Form ADV” (Jun. 3, 2021); and “A Checklist for Fund Managers to Ensure Form ADV, Part 2A Is Complete and Accurate” (May 6, 2021).

Akin Bolsters Investment Management Practice in Abu Dhabi and Dubai

Andrea Dougall and Marie-Sophie Bandeira Vieira have joined Akin as partners in its investment management practice in Abu Dhabi and Dubai, respectively. Having worked together previously, they reunite to expand Akin’s full-service alternative investments offering in the region. For insights from other Akin partners, see “Navigating DEI In a Charged Political Environment” (Nov. 20, 2025); and “SEC Eases Some Requirements for Registered Closed-End Funds Investing in Private Funds” (Nov. 6, 2025).

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