Clifford Chance
SEC Settlement Highlights Agency's Focus on Preventing Misuse of Material Non-Public Information by Private Fund Managers
May 28, 2020
On May 26, 2020, the U.S. Securities and Exchange Commission announced a settlement with a private fund manager, who agreed to pay $1,000,000 to settle charges that it failed to properly implement and enforce policies and procedures to prevent the misuse of potentially material non-public information, which was obtained as a result of the participation of one of its employees on the board of one of its publicly traded portfolio companies. The settlement highlights the need for private fund managers to ensure that their policies and procedures properly account for the risks relating to the possession and dissemination of MNPI.
