Untitled

flowchart TD
    A[Management of Private Funds and Discretionary Accounts] --> B1[Identified Deficiencies and Substandard Conduct]
    B1 --> B2[Misconduct Jeopardizing Investor Interests]
    B2 --> B3[Breaches of SFC Obligations]
    B3 --> B4[Potential Disciplinary Actions]

    A --> C1[Senior Management Responsibilities]
    C1 --> C2[Board and Management Duties]
    C2 --> C3[Review of Concerns and Strengthening Compliance]
    C3 --> C4[Independent Audits for Compliance]

    A --> D1[Regulatory Concerns]
    D1 --> D2[Conflicts of Interest]
    D1 --> D3[Risk Management Failures]
    D1 --> D4[Inadequate Investor Information]
    D1 --> D5[Inappropriate Valuation Methodologies]

    D2 --> D2A[Examples of Conflicts]
    D2A --> D2B[Use of Fund Assets for Related Entities]
    D2A --> D2C[Providing Financing with Higher Fees]
    D2A --> D2D[Trade Allocation Favoring Key Personnel]
    D2A --> D2E[Prioritizing Staff Redemptions]

    D3 --> D3A[Risk Management Failures]
    D3A --> D3B[Failure to Implement Adequate Procedures]
    D3A --> D3C[Inappropriate Investment Due Diligence]

    D4 --> D4A[Inadequate Investor Information]
    D4A --> D4B[Concentration Risks Disclosure Issues]
    D4A --> D4C[Failure to Disclose Major Investment Losses]

    D5 --> D5A[Inappropriate Valuation Methodologies]
    D5A --> D5B[Valuing Investments at Cost Without Adjustments]

    A --> E1[Potential Actions by SFC]
    E1 --> E2[Thematic On-Site Inspections]
    E1 --> E3[Disciplinary Actions Against Misconduct]
    E1 --> E4[Heightened Penalties for Persistent Misconduct]