The SEC set an effective date of November 13, 2023 and outlined compliance dates for significant new regulation of private fund advisers under the Advisers Act.
News & Insights
Several investment advisers settled SEC charges for custody violations on the assets of private funds. The SEC charged the firms for failing to comply with audit and reporting procedures that would have afforded an exemption from the applicable custodial requirements.
The SEC adopted significant new regulation of private fund advisers under the Advisers Act, as well as other requirements that apply to all SEC-registered investment advisers.
At an SEC Investor Advisory Committee meeting, regulators, academics and market participants examined (i) the disparity in growth between the private and public markets, (ii) oversight of investment advisers and related custody rules, and (iii) a recent rule proposal regarding open-end fund liquidity risk management and swing pricing.
The SEC amended the definitions of "covered clearing agency," "central securities depository services" and "sensitivity analysis" to be applicable to central counterparties and securities depositories.