SEC passes sweeping new rules for private fund advisers
By 
Aaron Nicodemus2023-08-24T13:41:00
The Securities and Exchange Commission (SEC) passed a sweeping set of rules for the $26 trillion private fund industry designed to increase transparency and competition but with provisions that address industry concerns about potential overreach.
The rules and amendments to the Investment Advisers Act, approved by the SEC in a 3-2 vote Wednesday, target certain practices in the private funds industry that “may impose significant risks and harms on investors and private funds,” according to an SEC fact sheet.
Those practices include conflicts of interest generated by the charging of certain fees and expenses (restricted activities rule), as well as preferential treatment offered to some fund investors—but not all—through the use of side letters (preferential treatment rule).
THIS IS MEMBERS-ONLY CONTENT
You are not logged in and do not have access to members-only content.
If you are already a registered user or a member, SIGN IN now.
Related articles
-
PremiumCourt overturns SEC private fund adviser rule, calls out agency overreach
A federal appeals court struck down the Securities and Exchange Commission’s private fund adviser rule, agreeing with industry advocates that the agency overstepped its authority.
-
PremiumExperts: Lawsuit against SEC’s private fund rules unlikely to cause delay
A lawsuit filed by industry groups alleging the Securities and Exchange Commission overstepped its authority when it passed new rules for private fund advisers is unlikely to stop their implementation, according to experts.
-
PremiumNew SEC rules for private fund advisers will keep compliance teams busy
Even though compliance dates for the Securities and Exchange Commission’s new private fund rules are a year to 18 months away, compliance teams should start analyzing the impact now, according to experts.
More from Regulatory Policy
-
ArticleBank of England tightens liquidity requirements for U.K. banks
U.K. banks must reassess how quickly they could monetize their assets in the event of a crisis under new rules proposed by the Bank of England’s regulatory body, the Prudential Regulation Authority. The proposals are the first changes to the liquidity rules since these were updated in the aftermath of ...
-
ArticleEurope’s groundbreaking crypto rules put at risk by delays in implementation
Europe may have taken the lead in attempting to regulate cryptoasset firms before any other major jurisdiction, but a year after the ground-breaking rules came into force, it does not necessarily follow that they are robust or that the industry they are meant to hold accountable is embracing them.
-
ArticleCompliance must focus on corruption as EU and U.K. seek to tackle rising risks
Corruption isn’t something that happens somewhere else, in other countries and committed by other people. Nowhere is corruption-proof, and new rules being introduced in the EU and the U.K. aim to focus compliance officers on the full gamut of risks in all jurisdictions and every sector.