Private-equity firms are racing to adapt to new rules about marketing funds to prospective investors, anticipating a sweep by regulators to check compliance when the directive takes effect next month.
The Securities and Exchange Commission’s marketing rule—430 pages of instructions intended to prevent investment advisers from misleading clients—is set to take effect Nov. 4, nearly two years after it was issued.
Although they have had nearly two years to get on board, many investment firms have begun taking steps related to the rule only recently, putting them at risk of not being in compliance when it takes effect, people who work with firms on regulatory compliance said.
‘Enforcement 40’ for 2020
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