Late last year, Securities and Exchange Commission (SEC) Chair Gary Gensler warned private fund managers that they should be prepared for increased regulatory scrutiny. Shortly thereafter, in February 2022, the SEC announced a historically sweeping set of rule proposals focused on the private fund industry. These proposals have coincided with a wave of enforcement actions impacting private fund managers, which made good on Chair Gensler’s promise. The cases run the gamut, involving scienter-based allegations of fraud and breach of fiduciary duty to strict liability violations of technical rules. Below is a summary of a selection of these cases, which provide a roadmap to the agency’s enforcement priorities as we wrap up 2022 and head into the new year.
‘Enforcement 40’ for 2020
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