Journal of Investment Compliance Publishes Article by Jason Daniel on SEC Action Against Investment Adviser
Journal of Investment Compliance has published the article “SEC targets broker-dealer implications of transaction-based deal fees,” written by Akin Gump investment management senior counsel Jason Daniel.
The article, first published as an Akin Gump client alert, explains a Securities and Exchange Commission (SEC) enforcement action against a registered investment adviser to private equity funds. The adviser in question, Blackstreet Capital Management, was alleged to have provided “brokerage services in connection with the acquisition and disposition of the securities of portfolio companies while not being registered as a broker dealer, making undisclosed use of fund assets, and failing to adopt policies and procedures designed to prevent the alleged violations.”
Daniel concludes that, as a result of the Blackstreet case, the SEC “will likely look for other cases in which investment advisers have received compensation for what the SEC views as broker-dealer services.”
To read the full article, please click here.