Wayne Carlin, litigation partner at Wachtell, Lipton, Rosen & Katz, chaired a program last Friday at the New York City Bar on hot topics in SEC enforcement. There were a number of interesting panels, most notably on the new whistleblower rules, the FCPA, insider trading and investment manager/investment company issues.
The SEC was well represented. Andrew Calamari, the head of the SEC’s New York regional office, gave the keynote speech.
I took away three things. First, I found the SEC’s openness refreshing, no “gotcha“ attitude here if you ask me. Second, there were no surprises. So please refer to the blogs I posted in the last month or so on SEC top priorities for 2013. You will find a clear roadmap. Third, I got the distinct impression that the SEC believes that there is a long road ahead for new registrants, especially private, i.e. hedge, funds. The concern I sensed here was that the “fiduciary” concept may be unfamiliar territory in that space and will require a steep learning curve.
Main topics for investment managers were in keeping with all the SEC’s communications so far: as part of the “private fund initiative,” the SEC will focus on valuation, performance reporting and other performance issues such as aberrational returns, as well as conflicts of interests. I will cover some of these in more detail in separate posts in the next few months, so stay tuned.
Please e-mail or tweet me any questions or comments; they are very welcome as always.
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