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Matthias Knab, Opalesque for New Managers:

The U.S. Securities and Exchange Commission's Division of Examinations has released its priorities for the 2025 fiscal year. Here's what hedge fund managers should be focusing on:

The SEC continues to prioritize examining advisers' adherence to their fiduciary duty. Key areas of focus include:

• Investment advice regarding high-cost products, unconventional instruments, and illiquid assets
• Disclosure and mitigation of conflicts of interest
• Fee calculations and related disclosures
• Effectiveness of compliance programs, especially in areas like marketing, valuation, trading, and portfolio management

Specific areas of scrutiny for private fund advisers include:

• Consistency between disclosures and actual practices, especially during market volatility
• Accuracy of fee and expense calculations and allocations
• Disclosure of conflicts of interest and risks
• Compliance with new SEC rules, including amendments to Form PF and updated marketing rules

The SEC is paying close attention to the use of new technologies:

• Use of AI, including for fraud prevention, ba......................

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