SEC has recently made broker-dealer registration an area of focus for private fund managers. This is bad news for the private equity industry, as the burdens and costs of registration and on-going compliance with SEC requirements are substantial. The regulatory framework starts with Section 15(a) of the Exchange Act, which requires that persons engaged in…
Author: Bohyung Kim
Conflict of Interests in Private Equity Funds
Until recently, the SEC’s Division of Enforcement focused its enforcement efforts on hedge fund managers who breached their fiduciary duties to clients or engaged in other types of fraudulent conduct. However, the growth of the private equity industry has not gone unnoticed by the SEC, and there have been a wave of enforcement actions against…