In its June 2014 Guidance Update, the SEC’s Division of Investment Management said that series funds are individual investment companies for purposes of compliance with certain investor protections, including the 1940 Act’s restrictions on principal transactions.

Section 17(a) of the 1940 Act generally prohibits an “affiliated person” of a mutual fund, or an affiliated

Andrew Bowden, Director of the SEC’s Office of Compliance Inspections and Examinations (OCIE), recently “spread sunshine” on private equity industry practices gathered through so-called “presence exams” of newly registered private fund advisers.

The goal, he said, is to help these advisers spot potential issues before they find themselves in regulatory hot water.  But the “sunshine”

The SEC’s Division of Investment Management recommends that fixed income fund advisers take steps to assess portfolio risk in light of “potential market volatility” and review the adequacy of related prospectus disclosures.

In particular, the staff suggests that fund advisers “consider taking” the following steps:

  • Assess and stress-test liquidity during normal and stressed environments, taking