Investment Management Partner Reflects on Speech by Head of SEC’s Investment Management Division

In The News
July 15, 2014

Investment management partner Brian McCabe (Boston) is quoted in an article titled “Always on Norm’s Mind? Directors in Champ Speech, Again” in BoardIQ’s July 15 issue. Mr. McCabe comments on the speech made by Norm Champ, the head of the SEC’s investment management division, at a recent Practising Law Institute private equity forum. He notes that Champ’s speech, which addressed fund boards’ oversight obligations with respect to alternative mutual funds, may reflect Champ’s desire that fund directors help ensure that potential compliance issues are addressed without direct involvement by the SEC. Mr. McCabe also highlights Champ’s mention of the importance of ensuring that funds receive fair allocations of investment opportunities when the adviser also manages other products with performance fees as an area that “might warrant additional scrutiny” by fund boards. He says, “Anecdotal evidence has suggested when senior SEC officials comment on the potential pitfalls of an issue, it may not be too long before the commission brings an enforcement action against someone who fell into that pit.”