On 14 February 2022, Seward & Kissel, our alliance firm for hedge fund and asset management work, published a client memorandum on the Securities and Exchange Commission’s (the SEC) proposed new rules that would dramatically and fundamentally alter the regulation of private fund advisers.
The proposed rules represent a significant expansion of the regulation of private fund advisers.
They would
- significantly impact the operations and practices of both registered and unregistered private fund advisers; and
- vastly restrict, and in many cases expressly prohibit, a number of common practices.
Seward & Kissel’s memorandum details the proposed changes and how these will impact their clients in the following areas:
Proposed Rules Applicable to Both Registered and Unregistered Advisers, Including ERAs
- Prohibited Activities
- Preferential Treatment (eg, Side Letters)
Proposed Rules Applicable to Registered Advisers
- Quarterly Statements
- Private Fund Audits
- Adviser-Led Secondaries
- Written Annual Compliance Rule Requirement
The period for public feedback on the proposed rules is
- 10 April 2022 (ie, 60 days after the proposed rules were published on the SEC website); or
- 30 days following publication in the Federal Register,
whichever is the longer.
For more information, please contact Devarshi Saksena, Sarah Crabb or Lucian Firth or speak to an attorney at Seward & Kissel.
