Morgan Lewis’s securities enforcement and investment management teams highlight expected US Securities and Exchange Commission (SEC or Commission) priorities for private fund managers in 2022 and look back at SEC private fund enforcement matters from the last year. If you have an investment adviser focus, we encourage you to review our companion piece directed to investment advisers.

As we pass the one-year anniversary of Chairman Gary Gensler’s tenure at the SEC, it is clear that he has made private funds a priority. Already, Chair Gensler has signaled a willingness to take on longstanding industry norms such as the “two and twenty” fee structure, and an intention to act aggressively against misconduct in the private funds space. The newly issued 2022 Examination Priorities make clear that, given the “size, complexity, and significant growth of this market,” private fund advisers will remain a focus of the Division of Examinations.