On June 9, 2026, the U.S. Securities and Exchange Commission (the “SEC”)’s Division of Examinations (the “Division”) issued a Risk Alert detailing its observations of investment advisers (each an “Adviser” and collectively “Advisers”) related to economic conflicts of interest. The Division based its Risk Alert on examinations related to Advisers’ fiduciary duties and issued it to assist Advisers in developing effective compliance programs and disclosures with respect to economic conflicts of interest. The Risk Alert is broken down into five main areas where the Division identified economic conflicts of interest that were undisclosed or disclosures that were incomplete or misleading; Adviser practices that were inconsistent with advisory agreements and disclosures; and compliance programs did not fully address economic conflicts of interest and risk:

A. Conflicts of Interest Associated with Advisers’ Cash Management Recommendations

B. Conflicts of Interest Associated with Other Revenue Opportunities

C. Disclosing Fees and Economic Conflicts of Interest in Form ADV

D. Fees Deviating from Advisory Agreements and Fee-Related Disclosures

E. Compliance Programs Identifying and Addressing Fee-Related Issues

Click here to read the full GT Alert.

Tags: economy, GT Insight, SEC, securities and exchange commission
Print:
Email this postTweet this postLike this postShare this post on LinkedIn
Photo of Arthur Don Arthur Don

Arthur Don has more than 45 years of experience representing public and private investment companies, money managers and investment advisers, mutual funds and their independent directors, private investment funds (including private equity funds and real estate funds), and broker-dealers. His practice focuses on…

Arthur Don has more than 45 years of experience representing public and private investment companies, money managers and investment advisers, mutual funds and their independent directors, private investment funds (including private equity funds and real estate funds), and broker-dealers. His practice focuses on regulatory structuring and compliance matters, governance, and sophisticated securities matters and transactions.

Throughout his career, Arthur has represented some of the nation’s most well-known and successful investment managers. His decades-long experience in the investment management arena enables him to provide bespoke counseling and strategies.

In addition, Arthur has represented issuers and underwriters in numerous public offerings. He frequently advises on independent director fiduciary duties and compliance policy issues and the implementation of ESG (Environmental, Social, and Governance) principles.

Read more about Arthur Don
Show more Show less
Photo of Steven M. Malina Steven M. Malina

Steven M. Malina, a former Senior Attorney in the SEC’s enforcement branch, focuses his practice on a variety of litigation and regulatory matters with representations of financial services industry clients, hedge fund matters, and securities and general commercial litigation. He represents officers, directors,

…

Steven M. Malina, a former Senior Attorney in the SEC’s enforcement branch, focuses his practice on a variety of litigation and regulatory matters with representations of financial services industry clients, hedge fund matters, and securities and general commercial litigation. He represents officers, directors, broker-dealers, investment advisors, commercial banks, investment banks, investment management firms, and public issuers in investigations and disciplinary proceedings initiated by the SEC, CFTC, FINRA, FDIC, NYSE, CBOE, CME, and state regulators. In addition, Steve represents clients in related investor class-action, derivative, and other litigation and arbitration. He has also conducted internal investigations on behalf of publicly traded companies and represented committees and executive officers in internal investigations. Steve has represented brokerage firms and their management in customer-initiated cases, and injunction and arbitration proceedings.

Prior to entering private practice, Steve served as First Vice President and Deputy Regional Counsel for a large financial corporation and was a Senior Attorney in the Branch of Enforcement of the U.S. Securities and Exchange Commission.

Read more about Steven M. MalinaSteven's Linkedin Profile
Show more Show less
Photo of Richard M. Cutshall Richard M. Cutshall

Richard M. Cutshall is Co-Chair of the firm’s Financial, Regulatory and Compliance Practice, Co-Chair of the firm’s Private Funds Group, and Co-Chair of the firm’s Investment Management Group. Rich has experience representing clients in a variety of investment management, general securities, and corporate

…

Richard M. Cutshall is Co-Chair of the firm’s Financial, Regulatory and Compliance Practice, Co-Chair of the firm’s Private Funds Group, and Co-Chair of the firm’s Investment Management Group. Rich has experience representing clients in a variety of investment management, general securities, and corporate matters, including the representation of mutual funds, ETFs, and other funds registered under the Investment Company Act of 1940; fund and ETF independent directors; unregistered investment funds; federally registered, state registered, and federally and state exempt investment advisers; broker-dealers; and an array of public and private companies.

Rich represents investment adviser clients at all stages of their life cycle, from concept and formation through registration, daily operation through wind-down and exiting the business, including representing investment adviser clients on both the buy-side and sell-side in M&A transactions. He also represents clients in all aspects of investment company practice, including organizing and forming new funds and ETFs, registering mutual funds and ETFs with the SEC, and the acquisition and merger of public funds.

In the course of representing investment advisers and public and private funds, Rich advises Greenberg Traurig’s clients on all aspects of securities regulatory compliance, particularly including new and existing SEC rules; SEC examination, regulatory, and investigative initiatives and sweeps; the SEC’s proposal, adoption, and implementation of new regulations, such as the recently rewritten investment adviser marketing rule; and finding compliance solutions related to the regulatory scheme applicable to investment advisers and investment funds, including implementing both novel and long-standing SEC regulatory guidance and interpretations. He also advises clients on the day-to-day aspects of corporate governance, board and adviser fiduciary responsibility, and SEC compliance, as well as assisting clients in all aspects of SEC and other regulatory examinations.

Rich has given presentations on and assists a variety of investment management clients with their compliance with anti-money laundering laws, and has performed annual independent third party audits of several clients’ anti-money laundering policies, programs and controls.

Rich also has experience representing clients in many industries in the sale or acquisition of businesses, formation of corporate entities, sophisticated contract negotiations, and in obtaining, renewing and renegotiating the terms of financing business operations. He routinely works with clients’ chief executive officers, chief financial officers, directors, and in-house general and assistant general counsels, including occasionally working from clients’ corporate headquarters upon request. Rich works with corporate and finance clients of all sizes, from startup family-run businesses and entrepreneurial endeavors to Fortune 500 clients. He also has experience representing clients across many industries, including health care, data management, retail product display and advertising design and manufacturing, industrial manufacturing, and real estate management and brokerage industries.

Read more about Richard M. Cutshall
Show more Show less
Photo of Douglas W. Hathaway Douglas W. Hathaway

Douglas W. Hathaway is a corporate associate in Greenberg Traurig’s Chicago office, where he is a member of the firm’s Fund Formation and Investment Management Groups. He regularly counsels private equity and hedge fund sponsors in connection with the formation, structuring, capital raising…

Douglas W. Hathaway is a corporate associate in Greenberg Traurig’s Chicago office, where he is a member of the firm’s Fund Formation and Investment Management Groups. He regularly counsels private equity and hedge fund sponsors in connection with the formation, structuring, capital raising activities, ongoing operations, and regulatory compliance of their funds and other alternative investment vehicles. He has represented established and emerging investment managers across an array of domestic and international strategies, including buyout equity, distressed debt, fund of funds, and alternative investment strategies. In addition, Douglas works with a number of registered funds on a number of issues including compliance, filings, and work with their independent boards.

Douglas also advises a range of investment advisers on various compliance issues.

Prior to joining the firm Douglas served in the United States Army and worked at the Federal Bureau of Investigation. During law school, he interned at the Securities and Exchange Commission’s Division of Enforcement.

Read more about Douglas W. HathawayDouglas's Linkedin Profile
Show more Show less
Photo of Nathan M. Iacovino Nathan M. Iacovino

Nathan M. Iacovino focuses his practice on the investment servicing and investment management industries, advising asset-servicing entities, including custodians, transfer agents, and administrators, in connection with various regulatory and transactional matters. He has supported and developed strategies related to the structuring, negotiation, and

…

Nathan M. Iacovino focuses his practice on the investment servicing and investment management industries, advising asset-servicing entities, including custodians, transfer agents, and administrators, in connection with various regulatory and transactional matters. He has supported and developed strategies related to the structuring, negotiation, and implementation of domestic and global custody, fund administration, managed account platforms, collateral management, and related servicing arrangements by and among his custodial, investment servicing and managed account platform provider clients and their respective fund, investor, pension plan, and adviser client base.

Nathan also represents mutual fund complexes, asset managers, investment advisers, institutional investors and financial institutions in developing and maintaining financial products while navigating the regulatory landscape.

Nathan’s clients include a wide range of private funds, registered investment companies, transfer agents, banks, financial institutions, institutional investors and investment advisors.

Read more about Nathan M. IacovinoNathan's Linkedin Profile
Show more Show less
Photo of Rebecca G. DiStefano Rebecca G. DiStefano

Rebecca G. DiStefano is a member of the firm’s Global Corporate Practice and Global Securities Practice with deep experience in capital formation matters and securities compliance. She counsels clients in a diverse range of corporate securities, corporate governance and regulatory matters at every

…

Rebecca G. DiStefano is a member of the firm’s Global Corporate Practice and Global Securities Practice with deep experience in capital formation matters and securities compliance. She counsels clients in a diverse range of corporate securities, corporate governance and regulatory matters at every stage of the corporate life cycle from the emerging growth phase to mature companies evaluating exits.

Ms. DiStefano has wide-ranging experience guiding the executive suite at the intersection of capital formation and securities regulatory matters analyzing a range of finance options to help clients pursue their objectives. Ms. DiStefano’s public and private company clients span a variety of industries including real estate, hospitality, financial services, life sciences, energy, manufacturing, fintech and blockchain technology, and resources. She guides firm clients in financing activities such as early seed, angel and venture capital rounds, community investing, liquidity, bridge and growth capital, and including Regulation D Private Placements, Regulation A Qualifications, Regulation CF Crowdfunding, Registrations, as well as attendant continuing disclosure requirements, periodic reporting and corporate governance matters.

Ms. DiStefano’s clients are often private companies preparing to become public companies or planning for a significant growth phase. She regularly represents clients before the Securities and Exchange Commission and state securities agencies. She has served on the firm’s interdisciplinary Blockchain Task Force since 2017.

Read more about Rebecca G. DiStefano
Show more Show less
Photo of Erika Cabo Erika Cabo

Erika Cabo focuses her practice on regulation, structuring, and compliance of, and transactions in, blockchain and digital assets, derivatives and complex structured products. She represents a diverse range of clients, including global blockchain technology companies, cryptocurrency exchanges, token sellers, cryptocurrency funds, broker-dealers, major

…

Erika Cabo focuses her practice on regulation, structuring, and compliance of, and transactions in, blockchain and digital assets, derivatives and complex structured products. She represents a diverse range of clients, including global blockchain technology companies, cryptocurrency exchanges, token sellers, cryptocurrency funds, broker-dealers, major global investment banks and financial institutions. Erika advises on tokenization of real-world assets, blockchain-based capital markets transactions, blockchain token sales, and trading and investment in digital assets.

Erika engages with regulators and policymakers on behalf of clients, including representing blockchain platforms before the SEC’s Crypto Task Force and drafting comment letters on proposed SEC rules. She has represented technology companies in advanced policy initiatives such as the CLARITY Act and market structure bills, advocating for clear regulatory definitions and safe harbor frameworks to support responsible innovation in the digital asset space.

Erika counsels financial institutions, blockchain platforms, centralized and decentralized digital asset exchanges and technology companies on securities and commodities issues, custody rule requirements, broker-dealer matters and cross-border regulatory issues. She structures deals and negotiates U.S. and cross-border agreements involving digital assets and complex financial products and regularly helps clients navigate evolving federal and state securities and commodities laws and regulations.

In her derivatives practice, Erika advises on all aspects of derivatives and structured products transactions across the U.S. and Latin America, including regulatory strategy, compliance, negotiation, structuring and documentation. Erika advises both regulated entities and end users on Dodd-Frank Act and Commodity Exchange Act regulation and compliance, and on the structuring of innovative hedging, trading, and risk management solutions.

In a previous role, Erika practiced in the New York office of a global law firm, where she represented buy-side and sell-side financial institutions, corporates and technology companies in the U.S. and Latin America in derivatives trading, documentation, and regulatory matters. She also counseled technology companies on securities laws in the firm’s blockchain and digital assets practice. She is fluent in Spanish.

Read more about Erika CaboErika's Linkedin Profile
Show more Show less
Related Posts
SEC
SEC Rescinds Longstanding ‘No-Deny’ Settlement Policy in Enforcement Actions
May 20, 2026
shutterstock_564442564
SEC Raises Threshold for ‘Qualified Client’ Status, Effective June 29, 2026
May 15, 2026
SEC Office
SEC Clarifies Status of Crypto Assets Under Federal Securities Laws, Signals Potential Exemptive and Safe Harbor Framework
March 18, 2026