The SEC charged a registered investment adviser and hedge fund manager, Silver Point Capital L.P., with failing to establish, implement, and enforce written policies and procedures reasonably designed to prevent the misuse of material nonpublic information (MNPI). The litigated case involved the firm's use of a former bankruptcy lawyer as a consultant who participated on creditors' committees of those distressed companies on the firm’s behalf while failing to enforce information barrier procedures to address the receipt and misuse of MNPI. According to the SEC's complaint, the consultant had access to and freely shared MNPI received as a participant in a bankruptcy court-appointed creditors' committee and confidential mediation sessions following defaults of Puerto Rico bonds. The hedge fund manager actively traded in such bonds while other similarly situated committee participants were prohibited from trading. The SEC claimed that Silver Point had an ambiguous compliance policy with respect to consultants that did not make clear when they should designate a consultant as falling within their relevant MNPI information barrier oversight and controls despite his access and their ability to do so.