Bruce Karpati, the former national chief enforcement officer of the SEC's asset management unit, has been named chief compliance officer for Prudential Investments. In addition to leading compliance for Prudential’s registered investment advisory company, he also serves as the chief compliance officer for its mutual funds boards.
Karpati spent more than a decade at the SEC, most recently as national chief enforcement officer for its asset management unit, leading enforcement efforts involving investment advisers, investment companies, mutual funds and private funds. His appointment at Prudential is effective Monday, May 13, 2013.
Karpati and several colleagues from the asset management unit and other offices received the SEC Chairman’s Award for Excellence in 2012 for their work on the aberrational performance inquiry, which proactively uses performance data to uncover various types of investment fraud by hedge fund managers.
“Beyond all the significant enforcement actions, Bruce has been a pioneer in the use of complex data analysis to detect securities fraud and a pivotal figure in the formation of specialty units within the Enforcement Division,” said George S. Canellos, co-director of the SEC’s Division of Enforcement.
During Karpati’s tenure as chief of the unit, he has overseen investigations of investment advisers for various forms of misconduct involving valuation, performance, conflicts of interest, insider trading, manipulation, derivatives, fund governance, the 15(c) process, disclosure, and compliance and controls.
Karpati has spearheaded several risk-based initiatives to ferret out misconduct by investment advisers, including the fund fee initiative, revenue sharing initiative, and compliance program initiative that specifically focuses on registered investment advisers who repeatedly fail to adopt or implement effective compliance programs.
