Preparing for the SEC private funds rule
What should private fund advisers expect?
The Securities and Exchange Commission’s (SEC) new rules for private fund advisers come as the industry is awaiting other major rules packages from the SEC, including rules impacting cybersecurity; open-end fund liquidity risk management programs and swing pricing; vendor oversight by investment advisers; and environmental, social, and governance (ESG) practices.
The SEC private funds rule
On August 23, 2023, the Securities and Exchange Commission (SEC) adopted significant new rules for private fund advisers. Certain aspects of the new rules will apply to all private fund advisers, not only those registered with the SEC. In addition, the finalized package includes amendments to the Investment Advisers Act of 1940 (Advisers Act) compliance program rule that will impact all registered investment advisers.
|
Impacted Entity |
Component |
Compliance Timeline |
|
Registered private fund advisors |
Quaterly statement rule Private fund audit rule Adviser-led secondaries rule Books and records rule |
March 2025 March 2025 Sept. 2024 or March 2025 |
|
All private fund advisers |
Restricted activities rule Preferential treatment rule Legacy status |
Sept. 2024 or March 2025 Sept. 2024 or March 2025 |
|
All registered advisers |
Compliance Rule |
November 2023 |
Maria Gattuso
Ryan Moore
