Hedge Funds

PF Manager Settles Charges Involving Conflicts, Disclosure and Exam Findings

A private fund manager that the SEC accused of not acting in a timely fashion on multiple examination findings was taken to federal court by the agency, which charged him with, among other things, engaging in conflicted transactions and misleading investors. The manager, Louis Mohlman, Jr. and his two advisory firms reached a settlement with the SEC the same day.

Hedge Fund Compliance: Insider Trading, Allocation, Alternative Data, and More

Advisers managing hedge funds, to a large extent, face many of the same issues that advisers managing other funds do. Requirements regarding fees and expenses, custody, books and records and more must be met. There are other compliance issues, however, where the SEC can be expected to pay particular attention to hedge funds - and managing advisers would be wise to make sure they are on top of them.

Hedge Fund Manager Ordered to Pay $13 Million in Investor Fraud Case

Dont promise what you cant deliver, dont overvalue investments and dont take from Peter to pay Paul. Those seem to be the main lessons drawn from a federal courts judgment against a hedge fund manager that the SEC has litigated against for the past seven years.

Private Fund Adviser and Owner/CCO Settle Multiple Charges with SEC

The SEC is long past the day of being unfamiliar with private fund advisers. It knows what to look for when it investigates and isnt shy about enforcement actions. When it finds a situation where the owner of the advisory firm is also the chief compliance officer, dont be surprised if it makes an example of the case.

PF Managers of Buyer and Seller Real Estate Funds Must Do Right by Both

Private fund advisers specializing in real estate transactions need to beware. Steer clear of conflicts of interest when selling property from one client fund to another. Disclosure must be your watchword and favoritism cannot be shown to either fund, regardless of your firms percentage of ownership in each.

Real Estate Investment Strategies in Offering Docs Must be Clear and Followed

If your private funds offering documents state that your fund will invest only in real estate, be aware that those are not just words. Stepping outside the parameters of your funds stated investment strategy may lead to trouble, both for the fund and for the fund manager. This is also true with unclear and/or inconsistent investment strategy wording between your private placement memorandum and other fund documents. Language, it turns out, matters.

Form PF FAQs Clarify Just What the SEC Wants

Those seeking answers when they complete Form PF now have another source to consult: a new set of answers to frequently asked questions issued recently by the SEC Division of Investment Management.

SEC Focus on Conflicts of Interest Leads to Settlement with Private Fund Adviser

Disclosure of conflicts of interest has long been a priority for the SEC in its policing of financial service firms. So when the agency conducted an examination of a public equity fund adviser in 2014 and found what it believed to be potential conflicts of interest that were not disclosed, it mounted an enforcement action that resulted in a settlement.

Private Fund Adviser Charged with Failure to Disclose Conflicted Transactions

The SECs enforcement activities against private fund advisers apparently are not limited to those that registered with the agency. Consider the case of Chicago-based Augustine Capital Management, which, along with two of its three owners, was recently charged by the SEC with a myriad of allegations, including failure to disclose conflicted transactions to investors.

Hedge Fund Settles SEC Charges That It Failed to Detect Insider Trading

Failure to detect insider trading may result in consequences as serious as those for insider trading itself. Just ask this hedge fund manager.

Audio Interviews

How to Read an SEC Enforcement Action

Stern Tannenbaum law firm partner Aegis Frumento on how to get the most from reading an SEC administrative order or court complaint.

Most Important Supreme Court Decisions for Advisers and Funds

Find out the high court decisions from recent years that are likely to affect how advisers and investment companies work from Debevoise partner Robert Kaplan. 

Top 10 Cybersecurity Steps to Take Now

Sutherland law firm partner Brian Rubin shares the most urgent cybersecurity steps for investment advisers.

Top Marketing Problems … and Solutions

Get solutions for the top marketing challenges that advisers face from ACA Compliance Group managing director Kimberly Daly

Watch Out for 5 Cybersecurity Myths

ACA Aponix Director Pascal Busnel on the most common cybersecurity myths that may cause firms to spend resources where they may not be needed.

The Hidden Costs of Non-Compliance

Proskauer law firm partner and former SEC Division of Investment Management deputy director Robert Plaze on why the costs of non-compliance go way beyond an SEC penalty.

CCO Liability: How to Protect Yourself

Find out from Blue Edge Capital CCO Margaret Fretz what chief compliance officers may be liable for and best practices to make sure you are protected.

Ethics or Compliance: Making the Choice

Find out the difference an ethics, rather than a compliance, perspective makes at an advisory firm from former Ethics and Compliance Officer Association COO Timothy Mazur.