Conflicts of interest, dealings with related parties, failures to disclose material information and inadequate recordkeeping are all red flags that will undoubtedly attract the SEC’s attention. A recent SEC settlement order (Order) illustrates the risks that asset managers court when they blur the lines between affiliates, fail to keep proper documentation and/or to implement appropriate policies and procedures, even when those improprieties do not ultimately cause any harm to investors. This article summarizes the conduct at issue and the terms of the Order, along with additional analysis and insights from industry experts. See “Emerging Trends and Themes in the SEC’s Oversight of Private Funds” (Aug. 16, 2023).