Conflicts of interest are always top-of-mind for the SEC. A recently settled SEC enforcement proceeding against the principal of an investment adviser is an important reminder for all fund managers that all conflicts of interest – even those arising out of arrangements that may yield little or no financial benefit – must be fully and fairly disclosed, including on an adviser’s Form ADV. This article details the facts and circumstances that gave rise to the enforcement proceeding, the alleged conflicts of interest and the terms of the settlement order. See “Division of Examination’s 2021 Exam Priorities: Perennial Focus Areas for Private Fund Managers (Part Two of Two)” (Apr. 22, 2021); and “Practical Lessons From OCIE’s Risk Alert on Compliance Issues for Private Fund Managers (Part One of Two)” (Nov. 19, 2020).