Hedge funds are facing a blistering pace of legal and regulatory change, as well as unprecedented scrutiny from regulators and investors. Our hedge fund practice is comprised of former regulators, enforcement lawyers, and in-house counsel who closely track, and guide clients through, this evolving regulatory, compliance, and enforcement landscape. We understand government regulatory and enforcement priorities because we served in senior positions in the SEC’s Enforcement and Trading and Markets Divisions and the DOJ’s Criminal Fraud Section. We understand hedge fund priorities because we worked in major Wall Street financial institutions and on the trading desk of a prominent hedge fund. We leverage those experiences, and our firm’s entrepreneurial and business-savvy culture, to problem solve for hedge funds in a variety of legal situations.
In 2018, we expect the SEC to focus on the adequacy of corporate policies and procedures in detecting and preventing the misuse of material, non-public information. We also expect the Commission to continue to focus on fee disclosure and conflicts of interest, the allocation of expenses and investment opportunities at private equity funds and hedge funds, and valuation. We further anticipate that the SEC will increase its focus on cybersecurity with an emphasis on ensuring that private funds’ cybersecurity policies and procedures are both sufficient and being followed, and that such funds have conducted a cybersecurity “risk inventory.”