Disclosure is at the heart of the U.S. securities laws. Advisers that fail to disclose material information do so at their peril – especially when that information relates to fees and expenses. The SEC’s recent settlement order (Order) against an investment adviser alleges that the adviser failed to disclose its right to recapture certain fees that it waived or expenses that it reimbursed to four funds it advised and the fact that fee and expense recaptures caused those funds to exceed certain expense caps. Notably, the adviser escaped a penalty by self-reporting, taking remedial action and cooperating with the SEC. Although the action pertains to management of money market funds, the Order is an important reminder of the potential benefits to all investment advisers of self-reporting, remediation and cooperation. This article discusses the alleged misconduct and the other relevant provisions of the Order. See “OCIE Risk Alert on Private Funds: Focus on Conflicts; Fees and Expenses; and MNPI (Part One of Two)” (Aug. 6, 2020).