A risk alert issued by the Securities and Exchange Commission examines disclosure deficiencies by investment advisors managing private funds.
The alert, published Tuesday, focuses on disclosure deficiencies related to conflicts of interest, fees and expenses, and policies related to the handling of material non-public information (MNPI). Compiled by the SEC’s Office of Compliance Inspections and Examinations (OCIE), the report’s findings “have resulted in a range of actions, including no comment letters, deficiency letters and, where appropriate, referrals to the Division of Enforcement.” Many advisors modified their practices to address issues brought to their attention by the OCIE, the report said.
