Regulatory Alerts2019-11-22
Added · Updated
Red Flags for Dubious Private Fund and Discretionary Account Arrangements or Transactions
The Securities and Futures Commission issues non-exhaustive guidance to asset managers identifying red flags in private fund and discretionary account arrangements. The document highlights transactions that are unduly complex, lack commercial rationale, or facilitate corporate misconduct such as warehousing and circumventing regulatory requirements. Asset managers are urged to remain wary of similar characteristics, including single-investment funds and cross-investing structures linked to connected parties.
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