SEC Chairman Gary Gensler has outlined a number of areas he expects to be a focus for exams of hedge funds and other private funds. Whether Gensler plans to put the hammer down on private funds remains to be seen, but he has put the industry on notice explains FrontLine’s Founder and President Amy Lynch. Providing the lead quotes, Ms. Lynch describes Gensler’s public comments coinciding with SEC issued risk alerts as a signal that private fund managers should be ready for a renewed focus of numerous compliance areas. These include, among others, fees and expenses, side letters, performance metrics, conflicts of interest and Form PF. Ms. Lynch further comments that firms in the remote work environment for a lengthy period would benefit from reviewing their oversight procedures to ensure they are operating at a high compliance level. See FundFire (subscription required), “SEC Puts Hedge Funds, Conflicts in Exam Crosshairs for ’22”
SEC’s Gensler names several key areas for private fund exams (FundFire)
FrontLine Compliance
