SEC to make some noise with private funds (FundFire)

After being relatively quiet on private funds in 2021, the SEC is now quickly increasing its attention to regulation for these firms. Several areas of focus appear to be on the SEC’s radar, including disclosures, guidance on fee arrangements, conflicts of interest in side letters and potentially ESG “green washing” issues. Amy Lynch, FrontLine’s Founder and President, comments that the SEC has many options at its disposal to pursue regulatory goals with private funds. This is especially the case with conflicts of interest. fees, and possibly the custody rule, adds Ms. Lynch. She points to the information gathered by the prior SEC administration that can now be used to restart rulemaking and pursue its upcoming priorities for exams. See FundFire (subscription required), “SEC Set to Jump on Private Fund Fees Rule, Side Letter Conflicts”