Jenner & Block

“SEC Private Equity Enforcement: A More Aggressive Approach,” Compliance & Enforcement

In this article, Jenner & Block Associate Andrew J. Lichtman and Partner Howard S. Suskin examine the recent increase in Securities and Exchange Commission (SEC) proceedings that target private equity funds for various fee allocation arrangements and conflicts of interest. While the SEC has typically brought these types of cases against private equity advisors based on inadequate disclosures, the SEC recently secured a settlement based on both breach of fiduciary duty and fraud. The authors warn lawyers and investment advisors to pay attention to the SEC’s private equity actions in 2017to see whether the recent settlement foreshadows a more aggressive approach by the SEC. Compliance & Enforcement is a blog sponsored by New York University School of Law’s Program on Corporate Compliance and Enforcement.

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