SEC rule proposals would shake up hedge fund practices (FundFire)

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…

Read More

Venture capital firms fall under proposed rules, even if not registered (Venture Capital Journal)

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…

Read More

Pendulum could swing back on accredited investor definition (Law360)

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,…

Read More

Increased reporting requirements add to compliance burden (Hedge Fund Alert)

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…

Read More

What’s really driving the SEC’s pursuit of private equity regulation (Institutional Investor)

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…

Read More