Hedge Fund Law Report

Start your trial subscription today 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.

Start your trial subscription today 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.

Start your trial subscription today Fund managers are increasingly deploying large language models and other artificial intelligence (AI) tools capable of accessing and analyzing nonpublic information at unprecedented scale. This trend raises pressing questions about how existing insider trading and material nonpublic information (MNPI) handling rules apply when the entity processing restricted data is not a human analyst but an AI model operating across vast datasets. The stakes are significant.

Start your trial subscription today You may notice a new look in this issue of the Hedge Fund Law Report, which offers a glimpse of the publication’s refreshed visual identity and logo. As the first phase of a broader rollout, the updated branding will eventually extend to www.hflawreport.com and other product touchpoints.

Start your trial subscription today The explosive rise of prediction markets in the last two years has led to a host of legal questions, not the least of which is whether and how they will be subject to insider trading enforcement. Event contracts are generally not securities subject to SEC enforcement under the securities laws, and other laws that might be applied to police insider trading have traditionally been used less frequently by enforcement authorities.

Start your trial subscription today The Financial Crimes Enforcement Network of the U.S. Department of the Treasury (FinCEN), SEC, CFTC and FINRA have imposed an aggregate $125 million in civil penalties on UBS Financial Services Inc. (UBSFS) for violations of the anti-money laundering (AML) requirements of the Bank Secrecy Act (BSA) and its implementing regulations.

Start your trial subscription today As broad regulatory changes under the current U.S. administration continue to drive hope for a more laissez-faire environment in which private funds can make ever freer use of technological innovations and bespoke cross-border strategies, the importance of conducting proper diligence is hard to overstate.

Start your trial subscription today This 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 third quarter of 2026.

Start your trial subscription today 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.

Start your trial subscription today Cybersecurity has been and remains a focus for the SEC. But FINRA is also keenly focused on cybersecurity. In fact, on May 5, 2022, FINRA released a tool to help small firms identify key cybersecurity risks and enhance their customer information protection, cybersecurity written supervisory programs and related controls.