United States SEC Charged Silver Point Capital for Failure to Implement Policies to Prevent Misuse of Material Non-Public Information Resulting in Silver Point Capital Buying $260 Million of Puerto Rico Bonds with Silver Point Consultant Possessing Material Non-Public Information on Puerto Rico Bonds from 2019 to 2020
23rd December 2024 | Hong Kong
The United States Securities and Exchange Commission (SEC) has charged Silver Point Capital for failure to implement policies to prevent misuse of material non-public information, resulting in Silver Point Capital buying $260 million of Puerto Rico bonds with a Silver Point consultant possessing material non-public information on Puerto Rico bonds from 2019 to 2020. United States SEC (20/12/24): “The Securities and Exchange Commission today charged registered investment adviser Silver Point Capital L.P. with failing to establish, implement, and enforce written policies and procedures reasonably designed to prevent the misuse of material nonpublic information (MNPI) relating to its participation on creditors’ committees. According to the SEC’s complaint, one of Silver Point’s core strategies was to invest in distressed companies. As part of this strategy, and because of the nature of its business, a long-time Silver Point consultant, a now-deceased lawyer, participated on creditors’ committees of those distressed companies on Silver Point’s behalf. However, the SEC alleges, the firm failed to enforce policies and procedures that were reasonably designed to address the specific risks associated with the consultant’s receipt of MNPI as a result of his participation on creditors’ committees. Specifically, the SEC alleges that, from September 2019 through February 2020, the consultant sat on an ad hoc creditors’ committee in connection with the restructuring of Puerto Rico’s defaulted municipal bonds and received MNPI from a related confidential mediation. According to the complaint, the consultant had extensive communications with Silver Point’s public trading desk, without involving the firm’s compliance department, at times when he had MNPI from the mediation and while Silver Point continued to buy Puerto Rico bonds. According to the SEC, this created a substantial risk that Silver Point may have misused information from the mediation in connection with its trading of Puerto Rico bonds. The SEC’s complaint, filed in the U.S. District Court for the District of Connecticut, charges Silver Point with violating provisions of the Investment Advisers Act of 1940 related to establishing and enforcing reasonably designed compliance policies and procedures.”
“ United States SEC Charged Silver Point Capital for Failure to Implement Policies to Prevent Misuse of Material Non-Public Information Resulting in Silver Point Capital Buying $260 Million of Puerto Rico Bonds with Silver Point Consultant Possessing Material Non-Public Information on Puerto Rico Bonds from 2019 to 2020 “
Sanjay Wadhwa, Acting Director of the SEC’s Division of Enforcement: “Silver Point is alleged to have purchased over $260 million of Puerto Rico bonds during the same period that a Silver Point consultant, who possessed MNPI about the same Puerto Rico bonds, had more than five hundred calls with firm employees, including those who actively traded such debt, without involving the firm’s compliance department. Allowing individuals who possess MNPI to have unfettered access to those making trading decisions presents an enhanced risk of misuse of MNPI, and the resulting risks to market integrity and investors are compounded when investment advisers fail to enforce their compliance policies and procedures to prevent the misuse of MNPI.”
United States SEC Charged Silver Point Capital for Failure to Implement Policies to Prevent Misuse of Material Non-Public Information Resulting in Silver Point Capital Buying $260 Million of Puerto Rico Bonds with Silver Point Consultant Possessing Material Non-Public Information on Puerto Rico Bonds from 2019 to 2020
Sign Up / Register
Caproasia Users
- Manage $20 million to $3 billion of assets
- Invest $3 million to $300 million
- Advise institutions, billionaires, UHNWs & HNWs
Caproasia Platforms | 11,000 Investors & Advisors
- Caproasia.com
- Caproasia Access
- Caproasia Events
- The Financial Centre | Find Services
- Membership
- Family Office Circle
- Professional Investor Circle
- Investor Relations Network
Monthly Roundtable & Networking
Family Office Programs
The 2025 Investment Day
- March - Hong Kong
- March - Singapore
- July - Hong Kong
- July - Singapore
- Sept- Hong Kong
- Sept - Singapore
- Oct- Hong Kong
- Nov - Singapore
- Visit: The Investment Day | Register: Click here
Caproasia Summits
- The Institutional Investor Summit
- The Investment / Alternatives Summit
- The Private Wealth Summit
- The Family Office Summit
- The CEO & Entrepreneur Summit
- The Capital Markets Summit
- The ESG / Sustainable Investment Summit
