SEC Off-Channel Comms Action Hints At Future Enforcement

On April 3, the U.S. Securities and Exchange Commission announced an off-channel communications enforcement action that was the first such action against a private fund adviser and the first off-channel case against a standalone investment adviser since the SEC launched investigative sweeps focused on off-channel communications in 2022.

The matter marks the latest in a series of enforcement actions for communications-related recordkeeping failures.