In response to rising geopolitical tensions – from the Middle East to the Taiwan Strait to the ongoing conflict in Ukraine –the Biden Administration is increasingly using economic incentives and sanctions to assist the United...more
To understand the litigation and regulatory risks that are coming in 2024 for private capital, it is helpful to look back briefly on recent events. Arguably, the single most important event over the last 18 months was the...more
3/19/2024
/ Acquisitions ,
Asset Management ,
Cryptocurrency ,
Cybersecurity ,
Dispute Resolution ,
Enforcement Actions ,
Fund Managers ,
Hedge Funds ,
Interest Rates ,
Investment Management ,
Investors ,
Mergers ,
Private Equity ,
Private Funds ,
Regulatory Agenda ,
Regulatory Reform ,
Regulatory Requirements ,
Securities and Exchange Commission (SEC) ,
Securities Regulation ,
Technology Sector
It’s a pattern we often see in boom-and-bust cycles—disputes rising in the period after a wave crests. SPAC deal volume hit an unprecedented high in 2021, but then slowed down in 2022 alongside IPOs. However, the fallout from...more
The SEC’s Enforcement Division is conducting a sweep investigation of large investment advisers regarding their employees’ use of “off-channel” communications. The sweep, which has been widely reported in the press, focuses...more
4/25/2023
/ Asset Management ,
Breach of Duty ,
Compliance ,
Enforcement Actions ,
Fiduciary Duty ,
Investigations ,
Investment Adviser ,
Investment Advisers Act of 1940 ,
Private Funds ,
Recordkeeping Requirements ,
Securities and Exchange Commission (SEC)
Crypto firm bankruptcies and resulting disruption in the crypto ecosystem will continue to exacerbate liquidity and regulatory concerns in this space. Signs of contagion are evident as prices of almost every cryptocurrency...more
As our other Top Ten posts have demonstrated, there is no shortage of risks for private fund sponsors to navigate in today’s economic and regulatory environment. Nevertheless, they need to prioritize the risk that hits...more
6/2/2022
/ Asset Management ,
Breach of Duty ,
Business Litigation ,
Commercial Litigation ,
Fiduciary Duty ,
Fraud ,
Fund Sponsors ,
Investment ,
Investment Funds ,
Investment Portfolios ,
Private Equity
2021 continued the trend of increased regulatory focus on privacy and cybersecurity for private investment funds in the U.S. and abroad. There are no signs of the trend leveling off any time soon. One of the topics that...more
Sanctions continue to be a dynamic area of regulation and enforcement. In its first year, the Biden Administration has already undertaken a number of different sanctions initiatives. The three examples below highlight the...more
3/9/2022
/ Anti-Corruption ,
Asset Management ,
Asset Seizure ,
Biden Administration ,
Economic Sanctions ,
Enforcement Priorities ,
Financial Transactions ,
Foreign Corrupt Practices Act (FCPA) ,
Foreign Policy ,
Foreign Relations ,
Global Magnitsky Act ,
Office of Foreign Assets Control (OFAC) ,
Private Investment Funds ,
Russia ,
SDN List ,
Ukraine ,
Virtual Currency
On October 7th, 2020, the Securities and Exchange Commission (SEC) announced the rescheduled date of its 2020 national compliance outreach seminar for investment companies and investment advisers. This program is intended to...more
Asset managers commonly engage regulatory compliance consultants to aid them in addressing regulatory requirements and implementing compliance programs. The work of those compliance professionals can be drawn into SEC...more
10/15/2020
/ Administrative Law Judge (ALJ) ,
Asset Management ,
Compliance ,
Consultants ,
Form ADV ,
Good Faith ,
Investment Advisers Act of 1940 ,
Motions in Limine ,
Scienter ,
Securities and Exchange Commission (SEC) ,
Securities Regulation ,
Securities Violations
As investors drive demand for investment products focused on environmental, social and governance (ESG) factors, fund managers have increasingly offered ESG-focused or “sustainable investing” funds. However, a recent speech...more
8/25/2020
/ Asset Management ,
Compliance ,
Corporate Governance ,
Disclosure Requirements ,
Environmental Policies ,
Environmental Social & Governance (ESG) ,
Fund Managers ,
Internal Controls ,
Investment Advisers Act of 1940 ,
OCIE ,
Policies and Procedures ,
Securities and Exchange Commission (SEC) ,
Taxonomy
In August 2020, the SEC issued two orders against VALIC Financial Advisors Inc. (VFA) related to VFA’s management of 403(b) and 457(b) plans. These matters arise out of two of the SEC’s enforcement initiatives, the Teachers...more
8/12/2020
/ 403(b) Plans ,
457(b) Plans ,
Asset Management ,
Breach of Duty ,
Broker-Dealer ,
Compliance ,
Conflicts of Interest ,
Enforcement Actions ,
Investment Adviser ,
Investment Advisers Act of 1940 ,
Investment Firms ,
Investment Funds ,
Retail Investors ,
Retirement Plan ,
Securities and Exchange Commission (SEC)
At the recent SEC Speaks program, sponsored by PLI, senior SEC staff members provided valuable insight into the SEC’s 2017 priorities for private funds. While the tenor of this year’s discussion seemed to focus more on...more
3/13/2017
/ Asset Management ,
Auditors ,
Broker-Dealer ,
Cybersecurity ,
Enforcement Guidance ,
Fee Disclosure ,
Insider Trading ,
Investment Adviser ,
OCIE ,
Private Funds ,
Public Pension ,
Retail Investors ,
SEC Examination Priorities ,
Securities and Exchange Commission (SEC) ,
Valuation
Valuation is typically near the top of the list when the SEC’s enforcement division and exam staff disclose their priority topics for private funds. We expect that trend to continue and, if anything, the focus on valuation...more