Recent SEC Focus on the Internal Marketing Activities of Private Funds
I. Comments by the SEC on Marketing of Private Funds
Last Friday, April 5, 2013, at an American Bar Association conference in Washington, D.C., David Blass, the Chief Counsel of the Securities and Exchange Commission’s (the “SEC”) Division of Trading and Markets, expressed concern at the way many private funds market interests in those funds through internal marketing personnel without the involvement of an SEC-registered broker-dealer.1 As a result, Mr. Blass stated that the SEC was subjecting private fund advisers to an “increased examination focus” with respect to the internal marketing activities of such advisers.
Mr. Blass noted that the SEC no longer views an unregistered broker claim as an “add on” claim to be brought only with another “main” claim, such as an allegation of fraud; rather, the SEC will consider enforcement actions for standalone claims of acting as an unregistered broker, and the SEC’s examination staff, through its Office of Compliance Inspections and Examinations, views internal marketing by private funds as a priority exam matter.
Link to related article can be found here
More articles on Securities Alerts and Issues can be found in our Securities Alerts: SEC & FINRA Section
Reports
Upcoming Events
Latest Questions
Popular Questions
Subscribe for News
Securities Disclaimer
This website is for informational purposes only and does not constitute an offer or solicitation to sell shares or securities. Any such offer or solicitation will be made only by means of an investment's confidential Offering Memorandum and in accordance with the terms of all applicable securities and other laws. This website does not constitute or form part of, and should not be construed as, any offer for sale or subscription of, or any invitation to offer to buy or subscribe for, any securities, nor should it or any part of it form the basis of, or be relied on in any connection with, any contract or commitment whatsoever. EB5Projects.com LLC and its affiliates expressly disclaim any and all responsibility for any direct or consequential loss or damage of any kind whatsoever arising directly or indirectly from: (i) reliance on any information contained in the website, (ii) any error, omission or inaccuracy in any such information or (iii) any action resulting therefrom.
