The Securities and Exchange Commission Division of Trading and Markets is continuing to focus on broker-dealer registration issues in the private fund area.
For example, the Staff is focusing on private fund advisers receiving transaction-based compensation for purported investment banking or other broker activities relating to one or more of the funds’ portfolio companies. The Staff is also reviewing broker-dealer registration requirements regarding high-frequency firms. Although many of the firms are registered broker-dealers–some are not–and the Staff will review their transactions.
This is simply an issue that never seems to go away.