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‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInPrivate funds prepare to spend billions on compliance after SEC rule | Financial Times
Private equity, venture capital and hedge fund groups are preparing to spend billions of dollars on compliance and legal advice as they cope with the biggest regulatory changes to hit the industry since the aftermath of the 2008 crisis. The US Securities and Exchange Commission’s decision last month to adopt sweeping new rules for the […]
The SEC Strikes Out Again on Crypto With Grayscale – WSJ
Congress exempted private funds from the Investment Company Act so they wouldn’t be subject to the same level of regulation as public funds that are available to less sophisticated retail investors. But Mr. Gensler claims the SEC can regulate private fund advisers under the Investment Advisers Act, which makes it “unlawful for any investment adviser […]
Guest Post: New SEC PE and Hedge Fund Disclosure Rules Winners? The Lawyers | The D&O Diary
On Monday, August 23, 2023 the Securities and Exchange Commission (SEC) voted to approve Private Fund Adviser amendments to the Investment Advisers Act of 1940, updating existing compliance rules for Private Equity Firms and Hedge Funds. The initial proposal was floated in February 2022, so the SEC did provide the market with a heads up […]
‘They Didn’t Blow Up the World’: Big Law Reacts to New SEC Fund Rules | Law.com
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 + […]
Private Funds Exhale Over SEC Rule Despite Big Compliance Costs
The SEC adopted, by a 3-2 vote Wednesday, regulations aimed at increasing transparency in the multi-trillion-dollar private fund industry. But the agency eased—and in some cases abandoned—some of the most contentious parts of its initial proposal. The SEC dropped a plan that would’ve exposed more fund managers to legal liability for mistakes, while softening its […]
SEC Takes On Private Equity, Hedge Funds – WSJ
The Securities and Exchange Commission voted 3-2 on Wednesday to adopt new requirements for private funds, which manage more than $25 trillion in gross assets for pension plans, university endowments and wealthy individuals. *** The SEC’s two Republican commissioners voted against the rules and questioned whether the agency has the legal authority to regulate private […]
SEC Enhances the Regulation of Private Fund Advisers
To enhance transparency, the final rules will require private fund advisers registered with the Commission to provide investors with quarterly statements detailing certain information regarding fund fees, expenses, and performance. In addition, the final rules will require a private fund adviser registered with the Commission to obtain and distribute to investors an annual financial statement […]
The Securities Litigation Review: SEC Enforcement: A Practical Guide For Private Fund Managers – Ropes & Gray
… In 2023, the SEC will likely substantially increase its enforcement arsenal tailored to private fund advisers. In 2022 and continuing into 2023, the SEC has proposed and continues to propose new rules and rule amendments that, if implemented, could create material shifts in the principles, prohibitions, limitations and requirements for private fund advisers in […]
DOJ, SEC Will Keep Ramping Up Enforcement Around Private Funds
When the SEC announced its 2022 examination priorities last March, regulation of private equity and hedge funds, or private funds, was listed at the very top. The SEC explained it intended to focus on those funds’ “compliance programs, fees and expenses, custody, fund audits, valuation, conflicts of interest, [and] disclosures of investment risks,” among other […]