The SEC’s Division of Examinations highlights identified ethics and compliance issues relating to investment advisers’ use of material nonpublic information. This release follows an earlier Risk Alert directed toward registered investment advisers to private funds calling out disclosure, due diligence, and conflicts of interest issues (see KPMG Regulatory alert here) as well as the SEC’s 2022 Examination Priorities, which included advisers to private funds and standards of conduct as areas of “significant focus” (see KMPG Regulatory Alert here). SEC registered investment advisers should look to these areas when considering risk coverage, controls, and testing in anticipation of heightened regulatory attention to their compliance programs.