Joseph Boryshansky Quoted in FundFire on Possible New SEC Hedge Fund Exam Targets
Joseph Boryshansky, a partner in Akin Gump’s white collar defense and government investigations practice, was quoted in the FundFire article “SEC Hints at New Hedge Fund Exam Targets,” addressing recent comments by the co-head of the SEC’s Private Funds Unit.
Igor Rozenblit, in a speech this month, according to the article, said the SEC is concerned about conflicts of interest and disclosure in the hedge fund industry. The article said Rozenblit indicated there are several areas of concern for which managers should prepare.
Boryshansky, a former senior trial counsel in the SEC’s Enforcement Division, said the broad themes of disclosure and conflicts of interest are not new targets for the agency. “Undisclosed conflicts of interest,” he said, “have been important priorities for the investment advisory exam and enforcement programs for some time.”
Boryshansky added that the SEC is now “perhaps less likely to walk away from enforcement cases based on mere negligent disclosures, even in the absence of evidence of bad intent. This means that the SEC staff can take strong positions if they believe disclosures were not adequate, even if no one at the [manager] is viewed as having acted in bad faith.”