June reflects a regulatory environment increasingly focused on transparency, accountability, and practical compliance oversight.
The SEC’s latest Risk Alert on economic conflicts of interest reinforces continued scrutiny around disclosures, fee billing, and conflicts management, while the SEC’s Draft Strategic Plan signals a broader shift toward clearer rulemaking, fraud-focused enforcement, and operational modernization.
At the same time, emerging risks tied to artificial intelligence, insider trading, market manipulation, and expanding CCO oversight continue to reshape the compliance landscape. In this month’s Salus GRC Brief, we highlight the key developments, regulatory signals, and practical considerations most relevant to compliance teams.
SEC Risk Alert Highlights 5 Common Conflict-of-Interest Deficiencies for RIAs
The SEC’s latest Risk Alert identifies recurring deficiencies involving cash sweep arrangements, share class selection, fee billing, disclosures, and compliance program design.
SEC Draft Strategic Plan Signals Regulatory Priorities for 2026–2030
The SEC’s Draft Strategic Plan outlines a regulatory approach centered on clearer rule making, stakeholder engagement, operational efficiency, and fraud-focused enforcement.
AI in Employment for RIAs: What Connecticut’s New Law Signals for Compliance Risk
Connecticut’s new AI law highlights emerging compliance risks tied to automated employment decisions, reinforcing the need for stronger AI governance and vendor oversight.
Market Manipulation and Activist Research: What Andrew Left’s Conviction Means for Compliance
Andrew Left’s conviction highlights growing scrutiny around activist trading, public market commentary, and whether trading conduct aligns with stated investment views.
Are CCOs Personally Accountable for Cyber Incidents or AI Failures?
As cybersecurity and AI oversight increasingly fall under compliance, many CCOs are reassessing where personal liability begins and what regulators actually expect.
SEC Charges 21 in Alleged Insider Trading Ring Tied to Law Firms
The SEC’s latest insider trading case underscores how quickly MNPI risk can spread through professional and personal networks, increasing the importance of strong surveillance and escalation controls.
Regulatory Deadlines
- Q1 2026 CPO-PQR (NFA/CFTC) – June 1, 2026
- Regulation S-P Compliance Date – June 3, 2026
- Distribute Audited Financial Statements (Fund of Funds) – June 29, 2026
- Distribute Pool Participant Statements (NFA/CFTC) – June 30, 2026
A Note from Bill Mulligan, CEO
As we move into the summer months, recent developments from the SEC continue to reinforce a familiar but important message: while regulatory priorities may evolve, fiduciary obligations remain firmly at the center of the investment advisory business.
The SEC’s recent Risk Alert on economic conflicts of interest highlights recurring examination deficiencies involving disclosures, fee billing, and compliance program design, while the SEC’s Draft Strategic Plan suggests renewed emphasis on transparency, sound governance, and clear regulatory expectations. Together, these developments reinforce that conflicts management is not simply a disclosure exercise but an ongoing operational and compliance responsibility.
At the same time, regulators continue to focus on market integrity and individual accountability. Recent enforcement actions involving insider trading and market manipulation underscore the importance of robust surveillance, strong MNPI controls, and effective internal governance.
Technology continues to reshape the regulatory landscape as well. As artificial intelligence becomes increasingly integrated across advisory operations, firms must apply the same governance, oversight, and vendor management disciplines to AI-enabled systems that they already use for cybersecurity and operational risk.
Our focus remains on helping clients navigate these evolving regulatory, technological, and operational challenges with practical guidance that balances innovation with effective governance. As always, we appreciate the trust our clients place in us and look forward to continuing to support you in the months ahead.
Warm regards,
Bill Mulligan, CEO