SEC Enforcement Trends for Private Funds: 2025–2026
The SEC’s approach to private fund regulation and enforcement shifted in 2025 following a change in leadership and evolving policy priorities. While overall enforcement activity declined, the SEC continues to focus on cases involving investor harm, disclosure failures, and conflicts of interest. This report reviews key 2025 developments and looks ahead to enforcement and examination trends in 2026.
Key Takeaways
- SEC enforcement involving private funds has declined in volume but remains focused on core fiduciary principles, disclosures, and investor protection.
- Conflicts of interest, fee and expense practices, valuation, liquidity, and custody remain perennial areas of scrutiny.
- Individual liability continues to be a priority, particularly where supervision failures or personal conflicts are alleged.
- The SEC is reassessing prior regulatory initiatives, including amendments to Form PF, with compliance deadlines extended into 2026.
- A push to expand retail access to private funds is reshaping regulatory expectations and is likely to drive increased examination and enforcement activity.
- Private fund advisers should expect a continued focus on fraud, misleading statements, and practices that place adviser interests ahead of investors.
The full report examines these developments in detail, including notable 2025 enforcement actions, evolving examination priorities, and practical enforcement predictions for 2026. It provides actionable insight for private fund advisers navigating heightened scrutiny around disclosures, conflicts, and fiduciary obligations—particularly as private markets become more accessible to retail investors.
Morgan Lewis advises private fund sponsors, investment advisers, and financial institutions across the full lifecycle of regulatory, examination, and enforcement matters. Our lawyers regularly represent clients in SEC examinations and investigations and help them design and enhance compliance programs aligned with evolving regulatory expectations. We stand ready to assist clients as enforcement priorities continue to evolve in 2026 and beyond.
