February’s regulatory landscape reflects a clear theme: modernization without deregulation. The SEC continues to signal openness to innovation — particularly around AI and digital assets — while reinforcing that foundational compliance obligations remain firmly in place.
This month’s Brief covers new Marketing Rule FAQs, custody developments, tokenized securities guidance, a leadership update within the Division of Examinations, and California’s new venture capital reporting requirements. For advisers and fund managers, the message is consistent: flexibility is increasing in certain areas, but expectations around documentation, risk assessment, and operational controls remain high.
As always, we’ve also included key upcoming regulatory deadlines to help firms stay ahead of their compliance calendars.
California Reporting for Venture Capital Firms
California’s new venture capital reporting law introduces annual demographic survey and disclosure requirements for certain VC firms with a California nexus. Registration begins March 1, 2026, with initial reporting due April 1—firms should assess applicability now.
SEC’s Daly to Investment Industry: Come Talk to Us About AI
In a notable shift in tone, SEC Division Director Brian Daly invited advisers and fund managers to bring AI initiatives directly to the Commission. The message is clear: the Division is signaling openness to pilot programs, no-action requests, and proactive engagement on AI adoption.
Custody Unlocked: Key Takeaways from Salus GRC January Webinar
Our January Custody Unlocked webinar brought together leading custody experts to unpack the current regulatory landscape, emerging crypto considerations, and the compliance pitfalls advisers continue to face. From SLOAs to surprise exams, the discussion offers practical insight for firms navigating custody risk in 2026.
SEC Appoints Keith E. Cassidy as Director of Division of Examinations
The SEC has formally appointed Keith E. Cassidy as Director of the Division of Examinations, reinforcing the agency’s emphasis on risk-based oversight and technology-informed supervision. Advisers should expect continued focus on operational effectiveness, cybersecurity, and exam modernization.
New SEC Marketing Rule FAQs: What Advisers Need to Know
The SEC has issued new Marketing Rule FAQs addressing performance fee presentation and promoter disqualification under SRO orders. The updates provide meaningful flexibility, but reinforce that compliance remains grounded in documented, facts-and-circumstances analysis.
SEC Clarifies Tokenized Securities
SEC staff have clarified that tokenized securities remain subject to existing federal securities laws, regardless of the technology used. Advisers should evaluate the structure of these instruments, the rights conveyed, and the role of intermediaries when assessing regulatory obligations.
Regulatory Deadlines
- Annual Form 13H – February 14, 2026
- Quarterly Form 13F – February 14, 2026
- Quarterly CTA-PR (NFA/CFTC) – February 14, 2026
- Quarterly Form PF – March 1, 2026
- Quarterly CPO-PQR (NFA/CFTC) – March 1, 2026
- Distribute Pool Participant Statements (NFA/CFTC) – March 1, 2026
- 4.13(a)(3) Affirmation (NFA Exempt Private Funds) – March 1, 2026
- Annual Form ADV Updating Amendment – March 31, 2026
A Note from Bill Mulligan, CEO
2026 is off to a powerful start. Against the backdrop of the SEC’s continued focus on innovation, transparency, and modernizing existing rules, including AI collaboration, we see meaningful opportunities for regulated firms this year. Our strategy remains focused on:
- AI and future-ready technology that supports workflows
- Cybersecurity and operational due diligence solutions
- Innovation with our partners
- Wealth Manager solutions
We approach every initiative the Salus GRC way, which continues to be the foundation of our growth. We appreciate your trust in us. If you’d like to compare notes on your 2026 priorities, I’d welcome a conversation.
Warm regards,
Bill Mulligan, CEO