Defining Issues | August 2023
The rules are designed to protect investors in private funds while promoting efficiency, competition and capital formation.
The rules increase visibility into certain practices involving adviser compensation schemes, sales practices and conflicts of interest through disclosure; establishing requirements to address such practices that have the potential to lead to investor harm; and restricting practices that are contrary to the public interest and the protection of investors.
Large private fund advisers (> $1.5B) | Smaller private fund advisers | |
---|---|---|
Audit rule and quarterly statement rule | 18 months | 18 months |
Adviser-led secondaries, preferential treatment, and restricted activities rules | 12 months | 18 months |
Amended advisers act compliance rule | 60 days | 60 days |
The SEC has released its final rules for private fund advisers. These rules aim to protect those who directly or indirectly invest in private funds by requiring a registered fund advisor to:
In addition, the final rules restrict all private fund advisers, including those that are not registered with the Commission under the Advisers Act, from
SEC Private Fund Adviser Reforms: Final Rules
Increased reporting/disclosure to investors; new compliance documentation requirements for all registered advisers
SEC matters
Keeping you up to date about SEC staff positions on reporting matters and proposed rulemaking that will affect registrants
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