Skip to main content

The SEC has recently issued a Risk Alert highlighting Observations from Examinations of Investment Advisers Managing Private Funds. This Risk Alert provides an overview of certain compliance issues observed by the Office of Compliance Inspections and Examinations (“OCIE”) in examinations of registered investment advisers that manage private equity funds or hedge funds (collectively, “private fund advisers”).

Over 36 percent of investment advisers registered with the SEC are private fund advisers. Based on hundreds of examinations conducted each year, OCIE highlights three areas of general deficiencies:

  1. Conflicts of interest;
  2. Fees and expenses; and
  3. Policies and procedures relating to material non-public information (“MNPI”)

Conflicts of Interest:

Is your Conflicts of Interest Policy up to date? Have you identified all conflicts in your firm? The SEC recently highlighted that Conflicts of Interest was one of three areas of common deficiencies in their examinations of investment advisers managing private funds.

These conflicts include:

  • Allocation of investments;
  • Financial relationships between investors or clients and the adviser;
  • Preferential liquidity rights;
  • Adviser interests in recommended investments;
  • Co-investments;
  • Service providers;
  • Fund restructurings; and
  • Cross-transactions

Fees and Expenses:

Fees and Expenses have been on the SEC’s radar for some time. As a private fund adviser, are your fees and expenses permissible and consistent with your disclosures?

These issues include:

  • Allocation of fees and expenses;
  • Operating partners;
  • Valuation; and
  • Monitoring board fees, deal fees and fee offsets

Material Non-Public Information (MNPI):

Will your policies on insider trading and the use of MNPI meet the expectations of the SEC? Have you adequately identified the risks of the misuse of MNPI to your business? Is your Code of Ethics up to date?

The deficiencies related to MNPI and the Code of Ethics include:

  • Inadequate policies and procedures;
  • Identification of risks;
  • Enforcement of the restricted list; and
  • Failure to enforce the Code of Ethic

You can see the SECs full Risk Alert announcement here.

Need help understanding the SEC’s expectations and reviewing your policies and procedure? Contact us for pragmatic assistance in assessing your compliance policies and procedures against OCIE’s observations detailed in the Risk Alert.

Click for more on our SEC Compliance services.


All courses are accessible on our bespoke web or app platforms immediately upon purchase.



All courses are delivered through fully-automated, interactive online visual solutions.



Courses cost from as little as £20 per Learner per Course, or £6 per Learner on Subscription.



A certificate is issued on successful completion of all courses for compliance-filing and all UK courses are CPD-certified.



All courses include regular ‘Check Your Knowledge’ sections throughout and an end-of-course Quiz.



Courses take from 30 to 90 minutes to complete and can be viewed and completed in multiple sittings.


Purchasing, Onboarding & Volume Discounts

You can purchase any combination of our broad range of e-Learning courses and onboard multiple users in your Firm, in just four quick and easy online steps:

  1. Select the courses and add them to your Basket
  2. Checkout and purchase your course(s)
  3. Sign In and Register your relevant employees/Users
  4. Allocate all your registered employees/Users to their course(s)

We’ll help you connect the dots with clear prompts and assistance throughout this quick and easy four-step process, which includes applying automated Volume Discounts depending on the number of courses you purchase, as follows:

Number of courses Volume Discount
10 – 24 Courses 2.5% Discount
25 – 49 Courses 5% Discount
50 – 99 Courses 7.5% Discount
100 – 149 Courses 10% Discount
150 – 199 Courses 12.5% Discount
200 – 249 Courses 15% Discount
250 – 299 Courses 17.5% Discount
>300 Courses 20% Discount

You will receive an enrolment email for each Course you sign Users up to.

Once registered and enrolled onto their course(s), your employees/Users will each receive a welcome email inclusive of their login credentials/instructions together with a separate enrolment confirmation for each of their courses.

All Clients have access to a centralised User Dashboard with Live Reporting on the progress of all your enrolled employees/Users and from where you can download all your employees/Users Course Certificates once they have successfully completed their courses. This is clearly explained in our Power User Guide, downloadable from your Account.