Although the SEC has signaled a lighter regulatory touch, it remains steadfast in its pursuit of misconduct that harms investors. On September 9, 2025, the SEC announced a settled civil enforcement proceeding against a private fund adviser and two management firms he controls. The adviser and one firm allegedly breached their fiduciary duties by failing to comply with the funds’ governing documents and disclose conflicts of interest associated with inter-fund loans, other transactions with affiliates and repurchases of investors’ fund interests. All defendants also allegedly made material misrepresentations to investors and prospective investors in the funds they advised. This article details the SEC’s allegations and the settlement terms. See “SEC, CFTC and FINRA Division Heads Discuss Enforcement Outlook” (Apr. 24, 2025).