Regulatory Alerts2022-02-09
Private Fund Advisers; Documentation of Registered Investment Adviser Compliance Reviews
The Securities and Exchange Commission proposes new rules requiring registered private fund advisers to deliver quarterly statements disclosing full costs and performance, obtain annual financial audits, and secure independent fairness opinions for adviser-led secondary transactions. The proposal also prohibits all private fund advisers from engaging in specific sales practices, conflicts of interest, and compensation schemes while banning undisclosed preferential treatment to certain investors. Corresponding amendments to the books and records and compliance rules will mandate written documentation of annual compliance program reviews to facilitate regulatory examinations.
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