Regulators have ratcheted up scrutiny of hedge funds, particularly in the areas of conflicts of interest, the Foreign Corrupt Practices Act, insider trading, and research practices. We represent clients in all phases of informal inquiries, formal investigations, and litigation. We understand the real-world risks posed by just the existence of an enforcement investigation, and are skilled at helping hedge funds successfully communicate with regulators and investors. Clients benefit from our deep bench of enforcement lawyers, all of whom have worked at the SEC or DOJ. We have numerous "wins" in cases where we successfully resolved government investigations before any proceedings were brought. When necessary, we defend our clients vigorously and efficiently.
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.”