UpFront » February 2022

Increased regulatory oversight, more compliance requirements and greater costs are all on the table for hedge funds in light of recent SEC rule proposals. Included in what would be numerous new requirements, SEC registered hedge funds would need to provide quarterly statements to investors that include performance, fees and expenses. Additionally, annual audits of each fund would be required for greater disclosures of side agreements and certain business arrangements. FrontLine’s Founder and President Amy Lynch…

As part of the SEC’s effort to enhance private fund investor protection, venture capital firms that are not registered could find themselves under new restrictions. If newly proposed rules for private funds are approved as written, it would prohibit even unregistered private fund advisers, such as venture capital firms, from providing certain types of preferential treatment to investors in their funds, plus other preferential terms, unless it’s disclosed. Amy Lynch, FrontLine’s Founder and President, expects…

As part of its review on rules surrounding private offerings, the SEC is taking a hard look at tightening the definition of an accredited investor. Where the previous administration sought to loosen requirements on the types of individuals and entities that would qualify, the current SEC is taking a more restrictive stance, explains Amy Lynch, FrontLine’s Founder and President. Part of a renewed focus by the SEC on investor protection, accredited investor thresholds are being…

Compliance requirements are piling up for hedge funds and other private funds. That is, if several new rule proposals issued by the SEC come to fruition. Proposed revisions to Form PF will require greater time commitments from CCOs and compliance personnel to collect and submit certain fund data based on reporting triggers. FrontLine’s Founder and President Amy Lynch comments on this issue were highlighted in two Hedge Fund Alert feature stories. More disclosure requirements along…

With its push for greater oversight of the private equity industry, is the SEC’s primary rationale the perceived growing risks in the private markets and furthering its mandate of investor protection? The recent rule proposal requiring more reporting of fund information on Form PF, including certain significant events at funds, would seem to support that reasoning. But, according to Amy Lynch, FrontLine’s Founder and President, that’s only part of the story. Ms. Lynch cites the…