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ARTICLE · 15 FEBRUARY 2022

SEC Staff Observes Practices Of Private Fund Advisers That Raise Concerns

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Investment advisers that manage private funds should promptly review their compliance policies and procedures, practices and disclosures to ensure these address, and are not inconsistent with...

United StatesFinance and Banking
Henry Bregstein
Henry Bregstein
Wendy Cohen
Wendy Cohen
Christian Hennion
Christian Hennion
Richard Marshall
Richard Marshall
Lance A. Zinman
Lance A. Zinman
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Investment advisers that manage private funds should promptly review their compliance policies and procedures, practices and disclosures to ensure these address, and are not inconsistent with, the areas of concern raised in a recent Risk Alert (Risk Alert) issued by the Securities and Exchange Commission's (SEC) Division of Examinations (EXAMS).

Issued on January 27, the areas of concern highlighted by EXAMS in the Risk Alert indicate that, in many cases, private funds' advisers are:

  • not acting consistently with disclosures;
  • using misleading disclosures regarding performance and marketing;
  • failing to conduct adequate due diligence elating to investments and service providers; and

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