SEC Rules to be Revisited in 2021

The SEC has published its list of rules that it will revisit pursuant to Section 610 of the Regulatory Flexibility Act (“RFA”). The majority of the rules listed affect registered investment advisers and are on the agenda for review this year.

Under the RFA, specific consideration must be given to the following factors when assessing a rule:

  • Continued need for the rule.
  • Complaints and comments received in relation to the rule.
  • Complexity of the rule.
  • Extent of duplication or overlap of the rule with other government regulations.
  • Length of time since the rule has been evaluated in relation to technology or economic changes.

Four rules on the SEC’s agenda are Investment Advisers Act rules and they are:

  • Rule 204(b)-1 which covers Form PF for private fund advisers.
  • Registration Rule changes (multiple), including registration for private fund advisers.
  • Rule 206(4)-5, Pay to Play rule.
  • Family Office registration rule exemptions.

The descriptions of proposed rule changes as filed in the federal register on March 25, 2021 are quite vague since it’s up to the Commission to determine what changes, if any, are actually needed.

FrontLine Compliance will keep a close eye on these rules in 2021 and will keep you informed of any updates.

View the Federal  Register, Securities and Exchange Commission, “List of Rules To Be Reviewed Pursuant to the Regulatory Flexibility Act”