Private funds rule tops SEC proposals as industry readies (FundFire)

As the SEC’s proposed rules move toward finalization, compliance teams are preparing for a multi-pronged regulatory approach. FrontLine’s Founder and President Amy Lynch comments that the sheer number of rule proposals coming out of the SEC last year points to a very active regulatory year for compliance in 2023. She adds that the SEC’s message over the past year has been that it’s focused on regulation of the private funds industry and hedge funds. The SEC will be looking to finalize a private funds rule that seeks greater transparency into funds with enhanced disclosure requirements. Also, firms can expect sweep exams zeroing in on several different areas, including the new Marketing Rule. Ms. Lynch recommends that CCOs gear up for a busy year ahead, stating that FrontLine has been getting an increasing number of requests for mock SEC exams as firms are feeling the pressure to be ready. See FundFire (subscription required), “‘A Juggernaut of Rules’ as Hedge Funds Brace for SEC Scrutiny in ’23”