The Chief of the SEC's Enforcement Division's Asset Management Unit, recently, indicated that the SEC Staff is now looking at identifying hedge and private equity fund RIAs, who may have higher risk issues like previous fraud allegations. See http://www.sec.gov/news/speech/2012/spch121812bk.htm
In particular, the SEC is looking at when RIA managers delay fund liquidation to continue to receive fees-- the so-called "zombie fund" position. The SEC Staff is also concerned about complex and/or illiquid assets in these funds. The SEC Staff believes that these issues will only worsen when the full impact of the JOBS Act comes on-line. Those changes will cause greater solicitations, and could lead to greater problems. As a result, the SEC Staff will concentrate on performance fees, incentives, valuation inflation, insider trading, and conflicts of interest.
As a result, RIAs must take precautions to ensure they avoid the SEC wrath.