Chief Compliance Officer Helps Firm Avoid Bigger Fine
The SEC fined a BDC sponsor for violating its exemptive order, but the firm received credit for self-remediation after the Chief Compliance Officer discovered the missteps and reported them to the Board. According to the SEC, the firm engaged in several impermissible joint transactions while seeking an exemptive order to engage in the transactions. Also, the firm engaged in transactions that specifically violated the Order because it did not disclose certain conflicts of interest. The SEC lauds the firm’s Chief Compliance Officer who identified the conflicts issue and informed the firm’s Board of Directors. The firm was fined $250,000, but the SEC specifically considered the remedial acts undertaken by the respondent.
Credit to the CCO for likely saving his firm from a much larger fine had the firm not taken action.