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SEC enforcement highlights valuation risks in affiliated loan transactions

SEC Headquarters, Washington DC
Photo: Anna Moneymaker/Getty Images

After reviewing a recent case, Janaya Moscony offers lessons learned and explains why this matters for advisers.

We regularly monitor SEC enforcement actions and examination findings to identify developments that may affect investment advisers and private fund managers. A recent enforcement action involving a private credit adviser highlights regulatory risks that can arise when advisers transfer assets from affiliated entities into client funds.

The US SEC recently