Repercussions from cases bolster SEC mandates (FundFire)

The SEC seems poised to expand its focus on private funds even before its new rule proposals are finalized. One way the SEC plans to push forward is by moving on regulatory issues arising from recent cases, namely its charges against Archegos Capital Management. FrontLine’s Founder and President Amy Lynch sees an SEC ready to not only scrutinize banks and prime brokers, but hedge funds and private equity managers on a larger scale. Ms. Lynch expects the SEC to take a hard look at these firms’ risk management practices, in addition to their compliance programs, and recommends that they do a top to bottom review to prepare for any SEC inquiries. She adds that the regulatory environment is quickly changing to one where the private fund space will have more at stake than ever before. See FundFire (subscription required), “Archegos, Crypto: SEC Takes Fresh Aim at Private Markets”