ComplianceAlert

Firms on notice with early release of SEC’s exam priorities

Released earlier than expected, the SEC’s 2024 Examination Priorities report (“Exam Priorities”) from the Division of Examinations (“the Division”) was issued on October 16, 2023. In the past few years, the Exam Priorities report was not made public until Q1 and sometimes not until late Q1, which made the data several months stale. The Division stated that it wanted this report to coincide with the beginning of its fiscal year of October 1, which makes…

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Expectations loom huge in SEC’s 2024 exam priorities

When the SEC recently issued its 2024 Examination Priorities document (“Exam Priorities”) there were some interesting changes that stood out from years past. For starters, this is easily the earliest the SEC has released its annual Exam Priorities in many years, which have traditionally been made public late in the calendar year or early the following year. Last time it was issued in February 2023 and then prior to that it was issued even later…

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ComplianceAlert

SEC’s New Private Fund Rules Alter Landscape (Video)

The private fund industry has a new compliance hurdle to reach with the SEC’s newly adopted Private Fund Rules (“the Rules”). On August 23, 2023, the Commission voted 3-2, along party lines, to adopt new rules (a total of five) under Section 211(h) of the Advisers Act. The SEC determined that new rules were needed for the private fund industry in order to address: Lack of transparency in private funds Conflicts of interest Lack of…

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SEC continues to rein in practices of private fund managers (FundFire)

In a non-stop year of SEC enforcement of its rules and regulations, private fund managers continue to be at the forefront of cases. The SEC recently brought charges against a large hedge fund for what the regulator deemed as language in employee agreements that violated whistleblower protections. According to the settlement, D.E. Shaw improperly required departing employees to sign releases stating that they had not filed complaints in order for them to receive deferred compensation.…

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Accelerated monitoring fees case puts private funds on more notice (FundFire)

The use of accelerated monitoring fees in violation of the Advisers Act is back in the spotlight, even though it did not become part of the recently adopted new Private Fund Rules. First surfacing as a priority area for the SEC back in 2016, the recent case against American Infrastructure Funds shows that the regulator is focused on violations of fiduciary duty and disclosure failures by private funds. The SEC will likely continue to rely…

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