A recent SEC settlement emphasizes the importance that the SEC places on proper documentation of transactions and disclosure of conflicts of interest to investors in hedge funds, even if those transactions and conflicts do not actually result in material financial loss to investors.  This article provides a detailed discussion of the settlement, then highlights the implications for the hedge fund industry arising out of the SEC’s order.  For more on transactions between hedge fund managers and funds, see “When and How Can Hedge Fund Managers Engage in Transactions with Their Hedge Funds?,” Hedge Fund Law Report, Vol. 4, No. 45 (Dec. 15, 2011).  For more on loans from hedge funds to managers, see “Important Implications and Recommendations for Hedge Fund Managers in the Aftermath of the SEC’s Settlement with Philip A. Falcone and Harbinger Entities,” Hedge Fund Law Report, Vol. 6, No. 33 (Aug. 22, 2013).