Advisory Firm Marathon Asset Management Charged with Policies Failures Regarding Potential Receipt of Confidential Information from Ad Hoc Creditors’ Committees

'The Securities and Exchange Commission (SEC) announced settled charges against registered investment adviser Marathon Asset Management LP for failing to establish, maintain, and enforce written policies and procedures reasonably designed to prevent the misuse of material nonpublic information. According to the SEC's order, Marathon Asset Management regularly participated on ad hoc creditors' committees where participants may receive material nonpublic information or engage advisers who analyze debtors' material nonpublic information. However, the firm failed to address specific risks associated with receiving and identifying potential material nonpublic information as a result of its participation on ad hoc creditors' committees. The SEC found that Marathon Asset Management violated Sections 204A and 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-7 thereunder, resulting in a $1.5 million penalty, a cease-and-desist order, and a censure.'