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PODCAST: Former top SEC examiner names biggest risks to PE

Firms should focus beyond the Commission's 'hot topic' compliance issues and understand their own individual vulnerabilities. 


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The biggest regulatory risk private equity firms face today is the proliferation of new products and the disclosure and compliance issues that come with that growth.

That’s according to Igor Rozenblit, former co-head of the SEC’s private funds unit. The unit examines private fund managers like private equity firms, which were forced to register as investment advisers by the 2010 Dodd-Frank financial reform act.

Among other risks is the idea that managers need to adjust management fees when they write off an investment. A write-off, as opposed to a write-down, even to zero, can be an area of ambiguity that managers should clarify.

Firms should also focus beyond the SEC’s “hot topic” compliance issues, and understand their own individual vulnerabilities.