SEC Increases Focus on Alternative Data and MNPI Risks

An exponential increase in the use of alternative data by fund managers has become a hot topic for the Securities and Exchange Commission. The SEC’s Office of Compliance Inspections and Examinations (OCIE) has sharpened its focus on alternative data, and we anticipate a risk alert by the OCIE staff is forthcoming. In this article for Bloomberg Law, SRZ partner Craig Warkol and special counsel Kelly Koscuiszka discuss the SEC’s increased focus on alternative data and MNPI risks, recent enforcement actions under Section 204A as a blueprint for potential enforcement actions regarding alternative data, and the importance of designing and implementing an effective compliance program regarding alternative data.