SEC v. Sound Point Capital Management LLP (2024)

Settled

Checked against the primary document on October 3, 2026. The library's summary, tags and figures for this record were compared with the regulator's own document by an AI model (Claude) following written instructions, with sampled and disputed records read a second time. No lawyer has reviewed them. A checked record can still contain errors, and checked does not mean endorsed. See how we check records or report a correction.

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In August 2024 the Securities and Exchange Commission settled with Sound Point Capital Management, a registered investment adviser, finding that between May 2018 and June 2024 it failed to establish, maintain and enforce written policies to prevent misuse of material non-public information about the loans underlying the collateralized loan obligations it traded. The firm agreed to a censure and a $1.8 million penalty. The order finds a compliance failure and does not find insider trading.

The record

Structured fields for this action, as recorded in our case library.
Agency	SEC
Release number	IA-6666
Date filed	2024-08-26
Date resolved	2024-08-26
Status	settled
Criminal parallel	No
Defendants	Sound Point Capital Management LLP (entity)
Cited as charged or alleged	Advisers Act s.204A ; Advisers Act s.206 (statutes and rules cited in the document; not a finding that they were violated)
Techniques

What was ordered

Civil penalty: $1.8m
Disgorgement: —
Prejudgment interest: —
Total relief: $1.8m
Alleged gain: —

A dash means the release did not state a figure we could extract, not that the figure is zero. Penalty and disgorgement are stored separately so aggregates across the library do not double-count the same dollars.

What is alleged to have happened

The Securities and Exchange Commission issued this settled order on August 26, 2024 (Advisers Act Release No. 6666).

The order finds that Sound Point had no written policies on such information before July 2022, and cites a July 2019 sale of two equity tranches of its own CLOs after weeks of considering a reduction in its exposure. The violations are of Sections 204A and 206(4) of the Advisers Act and Rule 206(4)-7.

For the regulator's own account of the facts, read the primary document linked above. This page deliberately summarises the structured record rather than reproducing the release.

Timeline

2024-08-26 Administrative proceeding instituted (cease-and-desist)

Primary documents

Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.

SEC order

The linked release is a work of the United States government and is not subject to copyright. Our summary and narrative above are our own writing.

Record added September 10, 2026. submit a correction.