In a significant enforcement action, the SEC sanctioned a private fund manager for failing to establish and maintain adequate policies and procedures to prevent the misuse of material nonpublic information (MNPI) while...more
9/9/2024
/ Collateralized Loan Obligations ,
Compliance ,
Enforcement Actions ,
Equity ,
Fraud ,
Investment Advisers Act of 1940 ,
MNPI ,
Policies and Procedures ,
Securities Act of 1933 ,
Securities and Exchange Commission (SEC) ,
Securities Exchange Act of 1934
As we reach the midpoint of 2024, the SEC has maintained its rigorous enforcement stance on the private funds industry, proposing new rules and oversight tools to better identify and investigate market practices. As 2024...more
6/14/2024
/ Artificial Intelligence ,
Data Retention ,
Employee Training ,
Enforcement ,
Fraud ,
Fund Managers ,
Hedge Funds ,
Indemnification ,
Instant Messaging Apps ,
Investment Adviser ,
Investment Advisers Act of 1940 ,
New Rules ,
Pay-To-Play ,
Policies and Procedures ,
Private Funds ,
Recordkeeping Requirements ,
Retail Investors ,
Securities and Exchange Commission (SEC)
The SEC’s new and proposed rules on cybersecurity and cyber-incident reporting will have a dual impact on private investment advisers and funds.
First, the proposal by the SEC will impose cybersecurity related...more
4/18/2024
/ Cyber Incident Reporting ,
Cybersecurity ,
Data Collection ,
Enforcement ,
Governance Standards ,
Investment Adviser ,
New Rules ,
Policies and Procedures ,
Recordkeeping Requirements ,
Regulatory Agenda ,
Risk Management ,
Securities and Exchange Commission (SEC) ,
Technology Sector
This Webinar aims to provide some practical advice regarding Generative AI (“Gen AI”) and the issues its presents for private fund managers related to securities law and compliance. To the presenters, this is an dynamic time...more
2021 continued the trend of increased regulatory focus on privacy and cybersecurity for private investment funds in the U.S. and abroad. There are no signs of the trend leveling off any time soon. One of the topics that...more
As investors drive demand for investment products focused on environmental, social and governance (ESG) factors, fund managers have increasingly offered ESG-focused or “sustainable investing” funds. However, a recent speech...more
8/25/2020
/ Asset Management ,
Compliance ,
Corporate Governance ,
Disclosure Requirements ,
Environmental Policies ,
Environmental Social & Governance (ESG) ,
Fund Managers ,
Internal Controls ,
Investment Advisers Act of 1940 ,
OCIE ,
Policies and Procedures ,
Securities and Exchange Commission (SEC) ,
Taxonomy
The SEC issued an order imposing sanctions against private equity adviser Rialto Capital Management, LLC (“Rialto”) for violations of the Advisors Act relating to expense allocation. The settlement addressed Rialto’s...more
8/14/2020
/ Allocation of Funds ,
Enforcement Actions ,
Investment Adviser ,
Investment Advisers Act of 1940 ,
LPAC ,
Policies and Procedures ,
Private Equity ,
Private Equity Funds ,
Registered Investment Advisors ,
Sanctions ,
Securities and Exchange Commission (SEC) ,
Third-Party ,
Transparency
With more people working remotely than ever before in light of COVID-19, firms in the private equity and hedge fund space should review their Regulation S-P privacy and information-safeguarding policies to ensure they are...more
6/30/2020
/ Broker-Dealer ,
Consumer Financial Protection Bureau (CFPB) ,
Coronavirus/COVID-19 ,
Cybersecurity ,
Data Privacy ,
Data Protection ,
Data Security ,
OCIE ,
Personally Identifiable Information ,
Policies and Procedures ,
Regulation P ,
Regulation S-P ,
Risk Alert ,
Securities and Exchange Commission (SEC)
A settlement last week involving a private equity fund sponsor is a reminder that compliance with fee calculation provisions and valuation policies and procedures are crucially important for fund managers. Even when an error...more
10/3/2019
/ Capital Contributions ,
Cease and Desist Orders ,
Enforcement Actions ,
Fund Sponsors ,
Investment Advisers Act of 1940 ,
Management Fees ,
Policies and Procedures ,
Private Equity ,
Sanctions ,
Securities and Exchange Commission (SEC) ,
Valuation
A recent action where the SEC focused on the presumably conservative undervaluation of assets suggests that it is more than willing to use valuation as a hook to deter “smoothing” of returns. As we previously noted, while the...more
On April 12, 2018, the SEC's Office of Compliance Inspections and Examinations ("OCIE") issued a risk alert listing the most common compliance issues concerning fees and expenses charged by SEC-registered investment advisers....more
4/19/2018
/ Advisors Act ,
Billing ,
Disclosure Requirements ,
Fee Agreements ,
Fees ,
Form ADV ,
Investment Adviser ,
Marketing ,
OCIE ,
Policies and Procedures ,
Rebates ,
Risk Alert ,
Securities and Exchange Commission (SEC)
If a team from the SEC arrives at your office and says, “We are conducting an on-site examination and would like to talk to the CCO right now,” are you prepared? A handful of registered investment advisers have faced surprise...more
A recent SEC settlement of whistleblower charges should serve as a useful reminder for private fund sponsors to conduct a comprehensive review of their policies and procedures.
On August 10, 2016, the SEC announced that...more
8/15/2016
/ Code of Conduct ,
Defend Trade Secrets Act (DTSA) ,
Dodd-Frank ,
Employee Handbooks ,
Employment Contract ,
Immunity ,
OSHA ,
Policies and Procedures ,
Private Funds ,
Securities and Exchange Commission (SEC) ,
Severance Agreements ,
Whistleblower Awards ,
Whistleblowers