Some of the most notable enforcement cases of the year show the SEC isn’t just looking to levy fines in instances where investors are caused harm, but anywhere it thinks there are insufficient systems to prevent investor harm.
The regulator gave the private funds industry its ‘playbook’, and now expects funds to execute. This year’s enforcement actions shows the SEC is taking a proactive approach to oversight.
The Office of Compliance Inspections and Examinations’ private funds risk alert is not only a warning to the industry, but also a sign of where enforcement is heading.