SEC’s Examination Division Shares Observations Relating to Common Deficiencies Uncovered in Private Fund Manager Examinations


Tanner Beverly, Dan Campbell, Shivani Choudhary, Vivek Pingili

Publish Date


Compliance Alert

  • Compliance

On January 27, 2022, the SEC’s Division of Examinations (EXAMS) shared observations relating to common deficiencies uncovered in the examination of private fund advisers over a five-year period. These observations are a sequel to, and supplement, the observations EXAMS shared in their June 2020 risk alert

While this risk alert is aimed primarily at SEC-registered private fund advisers, we believe that the topics covered by the alert are largely relevant to other types of private fund advisers subject to SEC oversight (such as exempt reporting advisers). Additionally, as is often the case with SEC guidance aimed at private fund managers, this risk alert may serve as a useful GRC best-practices benchmarking tool for non-US private fund advisers who are not subject to SEC oversight (directly or indirectly).

Read our in-depth summary and key takeaways from the risk alert where we cover the following topics: 

  • Contractual Compliance Failures
  • Misleading Marketing Activities
  • Inadequate Investment, Operational and Vendor Due Diligence
  • Inappropriate Hedge Clauses in Fund Governing Documents

Download our alert here

Save the date!

Join us for a special live Consultant's Corner webcast where we'll discuss what firms should know about the recent deficiencies uncovered in private fund manager examinations. Tune in Tuesday, February 15 at 11:00 AM EST as our team discusses this alert and answers your questions live. Register here

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If you have any further questions about this alert, please reach out to your ACA consultant or contact our team here