Private fund advisers continually balance their ongoing responsibility to ensure that the funds they advise comply with such funds’ governing documents and their responsibility to ensure their own compliance with applicable...more
7/18/2025
/ Affiliates ,
Compliance ,
Conflicts of Interest ,
Documentation ,
Enforcement Actions ,
Fiduciary Duty ,
Investigations ,
Investment Adviser ,
Investors ,
Policies and Procedures ,
Private Funds ,
Risk Management ,
Securities and Exchange Commission (SEC)
On Nov. 21, Judge Reed O’Connor of the Northern District of Texas vacated the Security and Exchange Commission’s (SEC) newly enacted Rules 3a5-4 and 3a44-2 (collectively, the Dealer Rule), which expanded the scope of who...more
On October 21, 2024, the U.S. Securities and Exchange Commission (SEC) Division of Examinations (the Division) released its annual Examination Priorities for fiscal year 2025 (the Report). The Report identifies certain...more
11/14/2024
/ Advisors Act ,
Bank Secrecy Act ,
Broker-Dealer ,
BSA/AML ,
Code of Conduct ,
Compliance ,
Enforcement Actions ,
Fiduciary Duty ,
Investment Adviser ,
Private Funds ,
SEC Examination Priorities ,
Securities and Exchange Commission (SEC)
Limited partnership agreements and similar documents that govern private funds are often amended over the course of a fund’s life cycle. For example, many funds may be currently going through the amendment process in...more
On February 8, 2024, the U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) (together, the Commissions) jointly adopted additional amendments to Form PF, the confidential form by...more
On February 14, 2024, the U.S. Securities and Exchange Commission (the SEC) proposed a rule (the Proposal) that would increase the threshold for what is considered a “qualifying venture capital fund” from $10 million to $12...more
As we have discussed in earlier Client Alerts, on August 23, 2023, the U.S. Securities and Exchange Commission (SEC) adopted new and amended rules under the Investment Advisers Act of 1940, as amended (the Advisers Act), to...more
12/7/2023
/ Disclosure Requirements ,
Fund Managers ,
Fund of Funds ,
Illiquid Assets ,
Investment Adviser ,
Investment Advisers Act of 1940 ,
Investment Portfolios ,
Investors ,
Performance Standards ,
Private Funds ,
Quarterly Report ,
Recordkeeping Requirements ,
Registered Investment Advisors ,
Reporting Requirements ,
Securities and Exchange Commission (SEC)
The U.S. Securities and Exchange Commission (SEC) Division of Examinations (the Division) recently released its annual Examination Priorities for fiscal year 2024 (the Report). The Report underlines the Division’s focus on...more
11/14/2023
/ Broker-Dealer ,
Cybersecurity ,
Disclosure ,
Fiduciary Duty ,
Investment Adviser ,
Investment Advisers Act of 1940 ,
Marketing ,
Policies and Procedures ,
Portfolio Managers ,
Private Funds ,
Registered Investment Advisors ,
SEC Examination Priorities ,
Securities and Exchange Commission (SEC)
On August 23, 2023, the Securities and Exchange Commission (SEC) adopted new rules and amendments under the Investment Advisers Act of 1940, as amended (the Advisers Act), that are expected to have a wide-ranging impact on...more
10/30/2023
/ Advisors Act ,
Anti-Fraud Provisions ,
Bad Faith ,
Best Interest Standard ,
Breach of Duty ,
Enforcement ,
Fiduciary Duty ,
Investment Adviser ,
Negligence ,
Offshore Funds ,
Portfolio Managers ,
Private Funds ,
Securities and Exchange Commission (SEC) ,
Standard of Conduct
On August 23, 2023, the U.S. Securities and Exchange Commission (SEC) adopted new and amended rules under the Investment Advisers Act of 1940, as amended (the Advisers Act), to address certain conflicts of interest and...more
10/25/2023
/ Fund Managers ,
Investment Adviser ,
Investment Company Act of 1940 ,
Investors ,
Legacy Funds ,
Policies and Procedures ,
Pooled Investment Vehicles ,
Preferred Treatment ,
Private Funds ,
Recordkeeping Requirements ,
Securities and Exchange Commission (SEC) ,
Transparency
On August 23, 2023, the U.S. Securities and Exchange Commission (SEC) adopted new and amended rules under the Investment Advisers Act of 1940, as amended (the Advisers Act), to address what it perceives as certain conflicts...more
9/26/2023
/ Borrowers ,
Clawbacks ,
Compliance ,
Consent ,
Disclosure Requirements ,
Enforcement Actions ,
Fiduciary Duty ,
Investment Adviser ,
Investment Advisers Act of 1940 ,
Investment Management ,
Legacy Funds ,
Negligence ,
Notice Requirements ,
Portfolio Managers ,
Private Funds ,
Recordkeeping Requirements ,
Registered Investment Advisors ,
Securities and Exchange Commission (SEC) ,
Securities Regulation ,
Willful Misconduct ,
Written Consent
On August 23, 2023, the U.S. Securities and Exchange Commission (SEC) announced the enactment of a series of new and amended rules under the Investment Advisers Act of 1940, as amended (the Advisers Act). We refer to these...more
8/30/2023
/ Audits ,
Compliance ,
Consent ,
Custody Rule ,
Disclosure Requirements ,
Final Rules ,
Fund Managers ,
Investment Adviser ,
Investment Advisers Act of 1940 ,
Investors ,
Private Funds ,
Quarterly Report ,
Recordkeeping Requirements ,
Registered Investment Advisors ,
Reporting Requirements ,
Securities and Exchange Commission (SEC) ,
Transparency
U.S. hedge funds, private equity funds, and venture capital funds (collectively, the Private Funds)2 and their U.S. general partners, sponsors, and managers (Advisers) are not directly subject to the Bank Secrecy Act of 1970...more
7/26/2023
/ Anti-Money Laundering ,
Bank Secrecy Act ,
FATF ,
Fund Managers ,
Hedge Funds ,
Office of Foreign Assets Control (OFAC) ,
Politically Exposed Person (PEPs) ,
Popular ,
Private Funds ,
Red Flags Rule ,
SDN List ,
Venture Capital
The Securities and Exchange Commission (SEC) routinely prepares Risk Alerts to provide helpful information to federally registered investment advisors (advisers). On June 8, the SEC released a Risk Alert that described...more
I. Introduction-
U.S. hedge funds, private equity funds, and venture capital funds (collectively, the Private Funds),1 and their U.S. general partners, sponsors, and managers (Advisers), are not directly subject to the...more
2/20/2023
/ Anti-Money Laundering ,
Bank Secrecy Act ,
FinCEN ,
Fund Managers ,
Hedge Funds ,
Investment Adviser ,
Money Laundering Control Act (MLCA) of 1986 ,
Office of Foreign Assets Control (OFAC) ,
Private Funds ,
Securities and Exchange Commission (SEC) ,
Venture Capital
On February 7, 2023, the U.S. Securities and Exchange Commission (“SEC”) Division of Examinations (the “Division”) released its annual Priorities Report1 for upcoming examinations of registered investment advisers...more
2/17/2023
/ Anti-Money Laundering ,
Broker-Dealer ,
Conflicts of Interest ,
Cryptoassets ,
Customer Protection Rule ,
Cyber Crimes ,
Cybersecurity ,
Emerging Technologies ,
Environmental Social & Governance (ESG) ,
Fiduciary Duty ,
Investment Adviser ,
Marketing ,
Popular ,
Portfolio Managers ,
Private Funds ,
Registered Investment Advisors ,
SEC Examination Priorities ,
Securities and Exchange Commission (SEC)
What You Need To Know:
•The SEC has proposed new rules applicable to private fund managers, some of which apply broadly to private fund managers that are not registered with the agency.
•The SEC has proposed to...more
2/23/2022
/ Audits ,
Cybersecurity ,
Fund Managers ,
Investment Adviser ,
Investment Advisers Act of 1940 ,
Investment Company Act of 1940 ,
Private Funds ,
Proposed Rules ,
Quarterly Report ,
Registered Investment Advisors ,
Securities and Exchange Commission (SEC)
On April 9, 2021, the U.S. Securities and Exchange Commission (the SEC) released results from its recent examinations of particular investment advisers, registered investment companies, and private funds (the firms) that...more
On March 3, the U.S. Securities and Exchange Commission announced its examination priorities for 2021, providing a much-anticipated glimpse into the Biden administration's overall priorities for white collar criminal...more
3/15/2021
/ Anti-Money Laundering ,
Biden Administration ,
Capital Markets ,
Chief Compliance Officers ,
Climate Change ,
Compliance ,
Coronavirus/COVID-19 ,
Data Security ,
Digital Assets ,
Disaster Preparedness ,
Environmental Social & Governance (ESG) ,
Fraud Prevention ,
Libor ,
Liquidity ,
Military Service Members ,
Operational Requirements ,
Private Funds ,
Registered Investment Advisors ,
Remote Working ,
Retail Investors ,
Retirement ,
Securities and Exchange Commission (SEC) ,
Standard of Conduct ,
Teachers ,
Technology Sector ,
Turnkey Contracts ,
White Collar Crimes
The Bureau of Economic Analysis’ (BEA) 2019 benchmark survey1 of financial services transactions between U.S. financial services providers and foreign persons is due on October 30, 2020, for respondents who submit their form...more
What You Need To Know:
•The SEC’s updates to the regulatory framework for fund of funds arrangements will be helpful to registered investment companies.
•Private funds will not be afforded additional flexibility to invest...more
The Securities and Exchange Commission’s Office of Compliance Inspections and Examinations (OCIE) issued a risk alert entitled Observations from Examinations of Investment Advisers Managing Private Funds (the “Alert”). The...more
7/16/2020
/ Allocation of Funds ,
Conflicts of Interest ,
Cross-Border Transactions ,
Employee Retirement Income Security Act (ERISA) ,
Global Code of Ethics ,
Hedge Funds ,
Investment Management ,
MNPI ,
OCIE ,
Private Funds ,
Securities and Exchange Commission (SEC)