SEC compliance examiners are reviewing business practices of private fund managers to find examples where they are not following through on disclosures made to investors, reported FundFire in a Jan. 15 article titled “SEC Exams Dig Deep to Catch Private Equity Manager Lapses.” Insights from asset management partner Jason Brown are included in the piece.
“Examiners will pore over existing disclosures – such as promises to charge portfolio companies market rate prices when those firms must use the manager’s preferred service providers – to make sure that they’re not only following outlined practices but also verifying those guidelines are still valid,” Jason says. Jason highlights that the shift is a reflection of private fund managers and examiners both getting past the learning curve, years after these firms first had to register as investment advisors in 2012.
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