Law firm partners and their fund clients breathed a sigh of relief when the Securities and Exchange Commission passed new rules this week for private equity firms and hedge funds that appeared watered down from original proposals.
“They didn’t blow up the world, but it is impactful,” Marc Elovitz, co-managing partner of Schulte Roth + Zabel and co-chair of the firm’s investment management and regulatory and compliance group, said in an interview. “It is going to be a significant change in private funds regulations.”
After all the bluster of the last several months, Elovitz said the end result was essentially a “disclosure statute.”
Going forward, the new rules—which will take effect in 60 days—will likely create more work for regulatory partners, sources said, as well as increase demand for recent public sector lawyers with regulatory agency experience.
Source: ‘They Didn’t Blow Up the World’: Big Law Reacts to New SEC Fund Rules | Law.com
