New York Investment Management partner Kay Gordon was quoted in a Compliance Reporter articled titled, “SEC to Expand Private Fund Exam Team.” The article discussed the Securities and Exchange Commission’s plan to broaden the reach of its Private Funds Unit. The expansion of the unit brings several pressing issues, one of them being the enhanced ability of the Team to focus on additional disclosure concerns including those discussed in the article.

“If an adviser has in its disclosure that fund- related insurance expenses will be charged to the fund, advisers need to be very careful that the insurance is for the specific benefit of the fund and that, if it benefits the adviser as well, that that element is at least very explicitly disclosed,” Kay told Compliance Reporter. “If you’re using fund assets to pay for something that may also be used by the adviser, then you may need to either reconsider that expense or, at least, provide a very robust disclosure,” she said.

Read, “SEC To Expand Private Fund Exam Team.”

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