Private Funds Advisory & Enforcement Defense

Enforcement

    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.

Looking Forward

In 2019, we expect the SEC to continue to focus on fee and expense disclosure and the allocation of expenses and investment opportunities at private equity funds and hedge funds. We think the Commission will review funds’ use of affiliated service providers and products and similar conflicts of interest in examinations. We further anticipate that the SEC will continue 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.” Finally, it is our view that the Commission will continue to monitor digital assets (including regulatory compliance where such assets are “securities”), focusing on areas such as portfolio management and trading, safety of client assets, pricing of client assets, and compliance and internal controls.