– To explain a recently settled administrative proceeding that the US Securities and Exchange Commission (SEC) brought against a private fund manager in connection with the use of fund assets to pay for the manager’s operating expenses.
– Explains the major takeaways from the settled case, and places them in the context of prior administrative proceedings and public statements from SEC staff.
– This case is the latest example of the SEC taking action against a private fund manager related to the improper deduction or allocation of expenses, and related disclosure lapses, and further cases are expected in the future.
– Private fund managers should examine their practices involving the reimbursement and allocation of expenses and related disclosures to fund investors.
– Practical guidance and explanation from experienced securities regulatory lawyers.
