Enforcement officials at Wall ​Street's top regulator are keeping an eye on potential risks in the private funds sector, the agency's newly installed head of enforcement said Wednesday.The ‌remarks from ⁠David ⁠Woodcock, director of enforcement at the U.S. Securities and Exchange Commission, were ​an apparent nod to persistent concern for the asset class. Private credit has ​attracted concern on Wall Street due to AI risks, fund outflows and fears of credit stress."We're attuned to potential ​risk relating to liquidity, fees, valuation and ⁠conflicts of ‌interest, not only at the private fund ​advisor level, ​but throughout the distribution chain," David Woodcock, director ⁠of enforcement at the U.S. Securities and Exchange ​Commission, said in public remarks. "Firms must ensure their ​representatives understand the products they sell and in their end, the investment profiles, risk tolerance and liquidity needs of their clients."Woodcock, a corporate attorney who previously ran the SEC's Ft. Worth regional office, took office last month as ‌enforcement director following the abrupt departure of former director Margaret Ryan, who left after clashing with agency ​leadership, as Reuters ​previously reported.Woodcock also ⁠addressed recent statistics showing a steep decline in SEC enforcement activity, saying the agency had decided to prioritize its efforts."I want ​to be clear the commission has deliberately shifted toward an emphasis on quality over quantity, and I fully support that direction," Woodcock said. "Our focus is and will remain on protecting investors and safeguarding markets from real harm."