Keynote Discussion Recap: SEC Enforcement Priorities, Process and Practical Takeaways

As investment in private markets continues to grow, the SEC is emphasizing the requirement of rigorous processes for fund managers to protect investors.

Process as a theme ran through “SEC Enforcement: Priorities, Process and Practical Takeaways,” a keynote discussion at Kroll’s Private Markets Conference that explored how changing market dynamics are shaping enforcement priorities. Featuring both current and former representation from the SEC, the keynote unpacked the commission’s approach to enforcement of compliance.

The panel referred to the SEC staff’s recent statement on valuation rigor and disclosure that underscores the commission’s focus on process discipline and disclosures as private market products reach more retail investors. While valuation inherently involves judgment, sound processes and transparent disclosures remain essential. 

Redemption pressures in early 2026 illustrated potential disconnects between managers and investors. Noting this challenge, panelists emphasized clearly communicating liquidity constraints throughout distribution channels and ensuring fund practices match what investors are told. 

Technological developments add another dimension. Advancements enable markets to evolve at a much quicker pace, and as such the SEC is taking a quality over quantity enforcement strategy to cultivate proactive, detailed disclosure among fund managers to investors. The integration of new tools into business practices means that compliance processes will need to evolve alongside the businesses they support.

While traditional fraud will continue to receive attention from the SEC, panelists hinted that non-fraud cases may be prioritized by those that jeopardize investor protection. As the SEC uses a facts-and-circumstances based approach in pursuing enforcement, disclosure is key when analyzing investor safeguards. Further, prompt communication and remediation during an SEC examination may mitigate enforcement referral risk, a panel takeaway reinforced by the SEC’s recently released Exam Handbook.

Under the current chairman, the SEC enforcement program has turned a focus back to fundamentals. The discussion concluded with a call to promote compliance and remediate deficiencies. 

In addition to the recap above, visit the Kroll Private Markets Conference 2026: Perspectives Hub for panel recaps throughout the month of November.