US Securities and Exchange Commission settles administrative action against fund manager concerning use of fund assets to pay management company expenses
Abstract
Purpose
To explain a recently settled administrative proceeding that the US Securities and Exchange Commission (SEC) brought against a private fund manager in connection with the use of fund assets to pay for the manager’s operating expenses.
Design/methodology/approach
Explains the major takeaways from the settled case, and places them in the context of prior administrative proceedings and public statements from SEC staff.
Findings
This case is the latest example of the SEC taking action against a private fund manager related to the improper deduction or allocation of expenses, and related disclosure lapses, and further cases are expected in the future.
Practical implications
Private fund managers should examine their practices involving the reimbursement and allocation of expenses and related disclosures to fund investors.
Originality/value
Practical guidance and explanation from experienced securities regulatory lawyers.
Keywords
Acknowledgements
The authors acknowledge the contribution of former Mayer Brown partner Rory Cohen.
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Citation
Pershkow, A.W. and Kanter, A.D. (2015), "US Securities and Exchange Commission settles administrative action against fund manager concerning use of fund assets to pay management company expenses", Journal of Investment Compliance, Vol. 16 No. 4, pp. 55-58. https://doi.org/10.1108/JOIC-08-2015-0050
Publisher
:Emerald Group Publishing Limited
Copyright © 2015, Authors