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SEC charges private fund administrator with gatekeeping failures

Keith Miller (Perkins Coie LLP, New York, New York, USA)
Martin E. Lybecker (Perkins Coie LLP, Washington, DC, USA)
Jesse Kanach (Perkins Coie LLP, Washington, DC, USA)
Mary C. Moynihan (Perkins Coie LLP, Washington, DC, USA)
Hillary B. Levun (Perkins Coie, LLP, Chicago, Illinois, USA)

Journal of Investment Compliance

ISSN: 1528-5812

Article publication date: 2 May 2017

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Abstract

Purpose

To explain a set of recent US Securities and Exchange Commission (SEC) administrative settlements targeting fund administrators and to alert fund administrators and other financial service providers to their growing “gatekeeper” obligations.

Design/methodology/approach

This article explores the factual and legal contours of SEC administrative settlements with a fund administrator, as well as related enforcement actions against investment managers, to better understand the affirmative steps the SEC is expecting financial service providers to take to help root out fraud and misappropriation in the financial services sector.

Findings

The SEC’s administrative settlements with this fund administrator illustrate the SEC’s expanding focus on the “gatekeeper” function and signal the intent of the SEC to impute culpability for wrongdoing to fund administrators and other financial service providers simply for not doing enough to root out fraud and misappropriation in the financial services sector.

Originality/value

This article contains valuable information about recent SEC enforcement activity and practical guidance from experienced white collar, securities, and investment management lawyers.

Keywords

Citation

Miller, K., Lybecker, M.E., Kanach, J., Moynihan, M.C. and Levun, H.B. (2017), "SEC charges private fund administrator with gatekeeping failures", Journal of Investment Compliance, Vol. 18 No. 1, pp. 65-67. https://doi.org/10.1108/JOIC-02-2017-0013

Publisher

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Emerald Publishing Limited

Copyright © 2017, Perkins Coie LLP