ADMINISTRATIVE PROCEEDING
File No. 3-21750

September 28, 2023 - The Securities and Exchange Commission (the "SEC") today announced settled charges against registered investment advisory firm Forepont Capital LLC ("Forepont"), based in White Plains, New York, for violating Sections 206(2), 206(3), and 206(4) of the Investment Advisers Act of 1940 by failing to deliver required audited financial statements in a timely manner, appropriately disclose and gain consent for certain principal transactions, and for violations of rules relating to compliance policies and procedures.

According to the SEC's order, Forepont violated Sections 206(4) of the Advisers Act and Rule 206(4)-2 thereunder-the "custody rule"-by failing to deliver to investors within the prescribed time period audited financial statements prepared in accordance with GAAP for two private funds for 2020 and 2021. In addition, the firm violated Section 206(3) by engaging in principal transactions with one of the funds without providing the requisite written disclosure before the transactions were completed, and also violated Section 206(2) by not properly disclosing certain other material facts concerning conflicts of interest presented by the transactions in breach of its fiduciary duty to the fund. The SEC's order further finds that Forepont failed to adopt and implement written policies and procedures reasonably designed to prevent violations of these types under the Advisers Act.

The SEC's order finds that, based on the foregoing, Forepont willfully violated Sections 206(2), 206(3), and 206(4) of the Advisers Act and Rules 206(4)-2 and 206(4)-7. Without admitting or denying the findings, Forepont consented to a cease-and-desist order and a censure and agreed to pay a $150,000 penalty.

The SEC's investigation was conducted by Austin Thompson and George N. Stepaniuk in the New York Regional Office, and was supervised by Tejal D. Shah. The examination that led to the investigation was conducted by George V. DeAngelis, Michael Paolo, Nell Spekman, and Rachel Lavery.