Hedge Fund LCD Speaks with Kelli Moll on Fund Managers Meeting Investors’ and Regulators’ Fiduciary Expectations
Hedge Fund Legal & Compliance Digest has published “How Managers Can Craft Protective Exculpation and Indemnification Provisions Without Violating Investors’ and Regulators’ Fiduciary Expectations: A Q&A With Akin Gump’s Kelli Moll.” Moll is a partner in Akin Gump’s investment management practice.
The column discusses a new Department of Labor fiduciary rule that may have sparked a new wave of investigation by the Securities and Exchange Commission. The commission, as the article reports, is now reviewing the exculpation and indemnification clauses included in fund limited partnership agreements, management agreements and disclosure documents to determine, among other things, whether private fund managers have sufficiently communicated to investors the legal standard of care that managers owe to them and the fund.
Moll answered questions about private fund industry practices related to indemnification and exculpation provisions, why the SEC is focusing on these provisions and how hedge fund managers can draft terms that protect themselves without incurring either investor or regulatory rebuke.
To read the full Q&A, please click here.