The US Securities and Exchange Commission (SEC) told private equity firms that they need more work to do on disclosures to investors.
Co-head of the private equity unit at SEC’s office of compliance inspections and examinations Igor Rozenblit said at an industry conference in Boston that there “does appear to me at least that there is some sort of disconnect between what GPs and think their LPs know and what LPs actually know,” according to the Wall Street Journal.
Earlier this year SEC launched an investigation into whether private equity fund advisers are collecting illegal fees.
Over the past two years, inspections of private equity and hedge fund managers identified various problems that are now being investigated by the agency.
These problems included misallocating fees and expenses, charging improper fees, disclosing fee monitoring inadequately and using bogus service providers to charge false to kick back part of the fee to the adviser, SEC chairman Mary Jo White told the US House of Representativesin April.
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