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SEC levies $11.2m fine on advisers who included owners’ tax liability in client fees

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Regulator punishes 13-year failure to provide full and fair disclosure

Two global investment funds with offices in Dallas, Texas, USA, have agreed to pay $11.2m in civil penalties after the SEC issued an order finding they failed over a 13-year period to disclose the inclusion of their owners’ anticipated income tax liability in fees charged to private equity clients.

Hudson