Relevant industry content we've curated covering a wide range of topics
SEC rethinks RIA registration threshold
The acting chair of the Securities and Exchange Commission (SEC) has asked for a review of the registration threshold for RIAs, a move that compliance experts said could overburden state governments.
Since the passage of the Dodd-Frank Act by Congress in 2010, RIAs with over $100m in assets under management have largely been required to register with the SEC as opposed to a state government, up from the $25m threshold that the federal government had in place prior to the legislation. SEC acting chair Mark Uyeda in a Tuesday speech floated the idea of raising the threshold further in an environment where the SEC faces staff attrition and scrutiny of its activity from the Trump administration.
While they acknowledged the need for a new look at defining RIA size from a regulatory point of view, compliance experts expressed concern about stretching state governments too thin.
‘My first reaction was wow,’ said Lori Weston, head of compliance at STP Investment Services, referencing the possibility of a $1bn registration threshold.
‘If mid-sized is under a billion, these firms are looking at not only understanding and complying with their own principal state regulations, which vary from the Advisers Act, but also multiple other states,’ Weston said.
Read what Lori and other subject matter experts had to say here.
Pimco Adopts AI Agents
Pimco has developed artificial intelligence capabilities, including “AI agents” to reduce errors occurring in back-office processes – and the fixed income giant hopes other industry firms will embrace its approach.
The nearly $2 trillion asset manager teamed up with fintech shop OnCorps AI to build algorithms that detect accounting, trading and other operational errors in the reconciliation process. OnCorps uses algorithms, large language models and “AI agents” to identify and explain errors or other unresolved issues to portfolio managers and analysts via a ChatGPT-like messaging system as well as text and email, OnCorps CEO Bob Suh told FundFire.
AI agents are a form of Agentic AI – a relatively new type of artificial intelligence that builds upon generative AI, in that it can make decisions independently without relying on human prompts.
The industry will be watching how Pimco’s partnership with OnCorps shakes out, Jim Lewis, STP Investment Services‘ head of technology, told FundFire.
“This is going to be a very interesting test of the market to see if it is ready for an algo-as-a-service,” he said. “If this gets some traction, what it leads to could be way more interesting than where it started.”
Read what Jim and other subject matter experts had to say in FundFire here.
Lawmakers Grill Trump’s SEC Pick over Alts, DOGE
President Donald Trump’s nominee to lead the Securities and Exchange Commission, Paul Atkins, faced heat from Democratic lawmakers Thursday over deregulation, expanding investor access to alternative investments, and potential conflicts of interest if he leads the agency.
Appearing before the Senate Committee on Banking, Housing and Urban Affairs, Atkins said it was time to “reset” the agency’s priorities and “return common sense to the SEC.”
Atkins, a former Republican SEC commissioner who served from 2002 to 2008, pledged to protect investors from fraud, provide a “firm regulatory foundation for digital assets” such as crypto, keep politics out of securities laws and regulations, and push “clear rules” that encourage investment.
Atkins stressed the need for a “robust cost-benefit analysis when considering new regulations.” That statement indicates that Atkins will push fewer regulations and will likely “take a hard look” at the rules proposed under Gensler that have not yet been adopted, Lori Weston, head of compliance at STP Investment Services, said in an email.
Read what Lori and others had to say in FundFire’s article here.
SEC Eases Marketing Rule Performance Requirements
SEC Eases Marketing Rule Performance Requirements on Wednesday. The SEC updated some of the more complex performance requirements in its Marketing Rule that industry firms have grappled with three years after the regulation took effect.
The updates were “highly anticipated” and allow firms to display gross performance without having to show net calculations when showing a subset of investments, as long as certain criteria are met, Cynthia Kelly, a senior compliance consultant at STP Investment Services, told FundFire in an email.
“This ensures transparency and balanced disclosure while acknowledging the impracticality of calculating net performance for extracted data,” she said.
The agency issued new guidance in two areas of a frequently asked questions document, one of which scrapped a requirement that asset managers show both gross and net performance when highlighting the results of a subset of investments from a portfolio, known as extracted performance.
Read more of what Cynthia had to say to FundFire here.
SEC issues marketing rule guidance on gross performance
The SEC issues marketing rule guidance on gross performance. In this new guidance, the SEC said it would not recommend enforcement actions against advisors who advertise the gross performance of an investment within a portfolio, if they meet certain requirements.
The guidance published by the SEC in the form of frequently asked questions (FAQs) shows that advisors governed by the rule must clearly identify such ‘extracted performance’ as gross performance and display the total portfolio’s gross and net performance in any advertisements.
STP Investment Services Announces STP LaunchAdvisor
STP Investment Services (STP), a global provider of technology-enabled investment operations, fund administration, and compliance solutions, today unveiled STP LaunchAdvisor, a bundled service designed to deliver comprehensive fund administration, investor services, regulatory filings, and core policies designed for exempt reporting advisers and private fund managers. The offering integrates fund administration and compliance into a single, cost-effective solution, eliminating the need for multiple service providers and providing the infrastructure and regulatory support emerging managers need to establish and scale their funds efficiently.
SEC Deploys Flurry of Exemptive Relief Orders Ahead of Atkins Confirmation
The Securities and Exchange Commission has issued a quick succession of exemptive relief orders since Commissioner Mark Uyeda was named acting chair of the agency just over a month ago, part of the agency’s overall efforts to ease regulations pushed by former Chair Gary Gensler.
The SEC issued four exemptive relief orders under the Securities Exchange Act of 1934 in February alone, compared to just three exemptions granted in all of 2024. Three of the recent actions were in response to industry calls for deadline extensions to recently adopted rules or the elimination of certain disclosure requirements.
Investment advisors breathed a “sigh of relief” when the agency extended the deadline for short sale disclosures by a year to Feb. 17, 2026, said Lori Weston, head of compliance at STP Investment Services. The Managed Funds Association and Alternative Investment Management Association had called on Uyeda in January to delay those reporting requirements, with MFA President Bryan Corbett saying in a statement that an extension would give alternative asset managers more time to build and test new systems, and receive SEC interpretive guidance.
STP Investment Services Expands ComplianceAdvisor
STP Investment Services Expands ComplianceAdvisor to Offer Scalable Compliance Support
New tiered solutions provide firms with flexible compliance solutions that grow with their needs
WEST CHESTER, PA, March 4, 2025 — STP Investment Services (STP), a global provider of technology-enabled investment operations, fund administration, and compliance solutions, today announced the expansion of its ComplianceAdvisor offering with structured, scalable solutions designed to support firms at every stage of their compliance journey.
Optimizing Operations: The Rise of Co-Sourcing and Lift-Outs for Established Fund Managers.
STP’s David Goldstein, Director of Product, Fund Services, penned a piece on the rise of co-sourcing for the latest edition of Uncorrelated magazine. See pages 50-54
In the past few decades, new fund managers have often started their operations with the support of fund administrators to streamline operations and reduce costs, alongside the rise of co-sourcing and lift-outs for established fund managers.
While this trend is expected to continue in 2025 and beyond, what about the established fund managers who were operating before the rise of this model? How are they adapting to the increasing demand for operational efficiency, reduced risks, and investor satisfaction?
Continue reading more here.
Event-Driven Tops Wish List for Hedge Fund Allocators
Event-driven strategies are gaining favor among hedge fund allocators as they anticipate a more active environment for merger activity and other strategic corporate moves this year, according to industry observers.
For the first time in a regular tracking survey run by Goldman Sachs, event-driven funds registered as the strategy of most interest, as it topped the latest poll of 358 institutional investors and intermediaries – narrowly beating long-short equity strategies.
“The new managers that I have been dealing with are definitely more event-driven,” said David Goldstein, director of fund services at STP Investment Services. “I’ve seen multiple new event-driven funds that are being set up.”
Read what David and other subject matter experts had to say in FundFire here.
STP Wins Best Fund Administrator
STP is thrilled to announce that we have won Best Fund Administrator at the WealthBriefing WealthTech Americas Awards for 2025.
Now in its 4th year, the WealthBriefing Awards recognizes partners who showcase top-class performance and innovation. These awards highlight the complexity and variety of the sector, as well as the outstanding figures within it.
As a fully independent fund administrator, STP offers a full suite of tech-enabled services that improve accuracy over books and records, streamline operations, and enhance investor relations. Our experienced fund accounting team and leading-edge BluePrint platform deliver end-to-end visibility into your investments to provide the context you need to make informed decisions that align with your business goals. We leverage advanced technology to implement secure processes and controls for the most dependable fund administration possible.
We extend our congratulations to all this year’s winners.
New Hedge Managers Are Bullish on Fund Launches
Emerging hedge fund managers are more optimistic about starting funds this year as they hope to capitalize on increased market volatility and a more welcoming regulatory environment in the U.S. under President Donald Trump.
The higher hopes come after several lean years for the hedge fund market that hit its newest players the hardest. It has been difficult for hedge fund managers to outperform in recent years as stock markets moved steadily higher, according to David Goldstein, director of fund services at STP Investment Service.
