2024 will be a busy year for compliance at private funds (FundFire)

There’s no let up for compliance at hedge funds and other private funds this year. On the table for these money managers are rule-specific SEC exams, such as those focused on marketing requirements, as well as new compliance obligations for Form PF, the new Private Fund Rules and potentially several other rules to be finalized. Private fund managers need to step-up their compliance quickly and should prepare for the new Private Fund Rules despite legal challenges, recommends Amy Lynch, FrontLine Compliance’s Founder and President. She comments that the amount of work required for these new rules is daunting and waiting for any legal decisions could only leave a short window of time before SEC compliance deadlines and related exams. Additionally, the pace of SEC exams looks to pick up even more this year, and Ms. Lynch states that every firm should be prepared to have an exam. She expects firms to at a minimum see exam questions on their marketing, but custody and electronic communications are other areas that may be a focus. See FundFire (subscription required), “SEC to Keep Pressure on Hedge Funds in ’24 with Tsunami of New Rules”