1. On July 29, 2026, Jamie McDonald has assumed the role of United States Attorney for the Southern District of New York. Earlier today, Judge Laura Taylor Swain, Chief District Judge for the Southern District of New York, informed the Office that the Court has appointed Mr. McDonald to serve as United States Attorney for the Southern District of New York, pursuant to 28 U.S.C. § 546(d), upon U.S. Attorney Jay Clayton’s resignation. Yesterday, Mr. Clayton was confirmed by the Senate to serve as Director of National Intelligence. Mr. Clayton tendered his resignation as U.S. Attorney, effective earlier today. Mr. McDonald was sworn in as the U.S. Attorney by Chief Judge Swain. Sean Buckley will continue in his role as Deputy United States Attorney, Amanda Houle will continue in her role as Chief of the Criminal Division, and Jeff Oestericher will continue in his role as Chief of the Civil Division as contemplated in the transition announcement of July 8, 2026. https://www.justice.gov/usao-sdny/pr/jamie-mcdonald-assumes-role-united-states-attorney-southern-district-new-york
2. On July 22, 2026, the SEC announced that Sam Waldon, Principal Deputy Director of the Division of Enforcement, will depart the agency on July 31, 2026, after more than 14 years of service. Osman Nawaz will succeed him as Principal Deputy Director. Waldon held multiple leadership roles, including Acting Deputy Director and Acting Director of Enforcement, and previously served as Chief Counsel in the Division of Enforcement. The SEC recognized Waldon’s contributions to legal scholarship, policy development, and leadership during his tenure. https://www.sec.gov/newsroom/press-releases/2026-68-sec-announces-departure-principal-deputy-director-enforcement-sam-waldon
3. On July 16, 2026, the SEC proposed Regulation E-Delivery to expand the use of electronic delivery for required investor information. The proposal would allow issuers, broker-dealers, investment advisers, and other market participants to use electronic delivery as the default method for providing certain regulatory documents while maintaining the ability for investors to request paper delivery. The proposed framework would apply to documents including prospectuses, shareholder reports, proxy statements, trade confirmations, Form CRS, and Form ADV Part 2 Brochures. The SEC stated that the proposal is intended to improve accessibility, efficiency, and reduce costs associated with paper delivery while providing investors with transition notices and the ability to opt out of electronic delivery. https://www.sec.gov/newsroom/press-releases/2026-67-sec-proposes-new-e-delivery-approach-make-information-more-readily-accessible-useful-investors
4. On July 13, 2026, the SEC instituted administrative proceedings against Derek Copeland. Copeland, an investment adviser representative, recommended more than $50 million in private real estate securities offerings to advisory clients while receiving nearly $1.5 million in compensation from the offering sponsors. Copeland failed to adequately disclose his financial interests and conflicts of interest related to these investments, including compensation arrangements and ownership interests connected to the sponsors. Copeland was censured and ordered to pay a civil money penalty in the amount of $125,000. This matter is being litigated. https://www.sec.gov/files/litigation/admin/2026/34-105889.pdf
5. On July 10, 2026, the SEC Office of Municipal Securities updated its Registration of Municipal Advisors FAQs to provide additional guidance regarding municipal advisor registration and recordkeeping requirements. The update provides clarification for market participants involved in public-private partnerships, municipal advisors completing Form MA and MA-I filings regarding disclosure of remote work locations, and municipal advisors’ recordkeeping obligations when advising on the pricing of new issues of municipal securities. The SEC also added guidance directing individuals and firms engaging in municipal advisory activities, including sole proprietors, on the steps required to register with the SEC and MSRB. https://www.sec.gov/newsroom/press-releases/2026-66-sec-office-municipal-securities-updates-faqs-registration-municipal-advisors?utm_medium=email&utm_source=govdelivery
6. On July 7, 2026, the SEC published its latest regulatory agenda, outlining an ambitious rulemaking schedule that signals a more modernization-focused approach to financial regulation. The agenda includes two pre-rule initiatives and 36 proposed rulemakings, many of which are intended to streamline existing regulations, reduce unnecessary compliance burdens, and improve capital formation while maintaining investor protections.
Among the notable initiatives are proposals to:
- Reform the Investment Company Act and Investment Advisers Act to expand retail investor access to private markets through registered investment companies and permit performance-based advisory fees for a broader group of clients.
- Update Regulation D, including potential changes to the accredited investor definition.
- Amend Form PF reporting requirements for private fund advisers.
The agenda also indicates that the SEC is evaluating several other significant regulatory changes, including:
- Revisions to the Custody Rule.
- Updates to books-and-records requirements under Advisers Act Rule 204-2 and Exchange Act Rule 17a-4.
- Possible changes to the Pay-to-Play Rule (Rule 206(4)-5).
- Amendments to Exchange Act Section 15(a) that could expand opportunities for securities “finders.”
In announcing the agenda, SEC Chairman Paul Atkins stated that the Commission’s priorities are intended to promote a regulatory framework that is transparent, accessible, and supportive of capital formation. He also emphasized expanding retail investor access to private markets while maintaining appropriate investor protections. While these items remain at various stages of the rulemaking process and are not yet effective, investment advisers should monitor these developments closely, as several proposals could result in meaningful changes to compliance obligations and business practices over the coming year.
7. On July 7, 2026, the SEC announced the creation of the Retail Fraud Working Group to strengthen efforts to identify and combat fraud targeting everyday investors. The group focuses on misconduct including offering frauds, pump-and-dump schemes, market manipulation, and breaches of duties by investment advisers and broker-dealers. It coordinates with regulatory partners, foreign counterparts, and participates in investor education outreach. https://www.sec.gov/newsroom/press-releases/2026-63-sec-forms-new-retail-fraud-working-group
8. On July 1, 2026, the SEC instituted administrative proceedings against David Kushner and La Mancha Funding Corp. for defrauding nearly two dozen investors out of approximately $2.1 million in a series of private securities offerings. Kushner, president and sole owner of La Mancha, and the firm raised approximately $10.49 million from investors by selling membership interests in limited liability companies for short-term loans. Kushner and La Mancha misrepresented the use of investor funds, took undisclosed fees, and misappropriated at least $2.14 million using the funds for personal expenses including credit card bills, his child’s tuition, country club dues, a luxury vehicle, and a rental home. Kushner and La Mancha consented to judgments, subject to court approval, permanently enjoining them from violating securities laws, including conduct-based injunctions and an officer-and-director bar. Monetary relief will be determined later by the court. Kushner previously pled guilty in a parallel criminal action for grand larceny and scheme to defraud. This matter is being litigated. https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26579
9. On June 30, 2026, FINRA has released an independent report containing two dozen recommendations aimed at strengthening its enforcement program. The review, conducted by former SEC Commissioner Troy Paredes and William & Mary Law School Professor Paul Eckert, was commissioned by FINRA to identify opportunities to improve investor protection, market integrity, and the effectiveness of its enforcement function.
The authors gathered input from a broad range of stakeholders, including brokerage firms, FINRA staff and leadership, state securities regulators, investor advocates, industry trade associations, and defense counsel. While concluding that FINRA’s current enforcement program is fundamentally sound, the report identifies several opportunities to enhance transparency, fairness, consistency, and operational efficiency.
Among the report’s key recommendations are:
- Increase transparency by publishing updated enforcement procedures and an enhanced Enforcement Manual.
- Formalize and expand Wells Notice procedures to provide firms with greater clarity and engagement during investigations.
- Provide firms with additional opportunities to engage with FINRA before matters are formally referred to Enforcement.
- Improve transparency regarding the lifecycle of enforcement investigations and the use of regulatory information requests.
- Establish a process for firms to challenge information requests when appropriate.
- Better coordinate enforcement efforts with the SEC, CFTC, FinCEN, Department of Labor, and state securities regulators to reduce duplicative investigations.
- Encourage more timely investigations by adopting reasonable limits on investigation length and promoting earlier resolution of compliance issues.
- Update guidance regarding cooperation credit for firms that meaningfully assist during investigations.
The report also recognizes that FINRA is currently restructuring portions of its regulatory program, and some of these recommendations may be incorporated as part of those broader organizational changes. Although the recommendations are not binding, they provide insight into potential future enhancements to FINRA’s enforcement process and may ultimately affect how examinations and enforcement matters are handled.
10. On June 24, 2026, the SEC highlighted the increasing risks investment advisers may face as digital assets and tokenized investments become more common in client portfolios. The article emphasized risks related to crypto asset custody, cybersecurity incidents, operational failures, insufficient due diligence, and the potential loss of client assets due to fraud, hacking, or improper controls. Investment advisers should maintain appropriate policies, procedures, vendor oversight, custody reviews, and risk assessments when recommending or managing digital asset investments. https://www.markel.com/insights-and-resources/insights/navigating-investment-advisors-liability-risks-in-an-age-of-tokenization?utm_source=iaa-newsletter&utm_medium=referral&utm_campaign=fi-sponsored&utm_content=token-rectangle&utm_term=2026-7