Urgency for private equity on marketing rule compliance (The Wall Street Journal)

The SEC’s November 4th compliance date for its Marketing Rule lies just ahead – and the private equity industry is still grappling with meeting its requirements. Notably, these firms are being challenged by how the rule dictates fund performance should be presented in materials for investors. Amy Lynch, FrontLine’s Founder and President, expects many PE firms to only be partially compliant by the deadline, even with the SEC alerting the industry it will roll out “sweep” exams to check for rule compliance. Ms. Lynch does not think the SEC will immediately start issuing sanctions and fines to firms unless they find egregious errors. Instead, she sees the SEC issuing more guidance on how firms can do better to comply with the rule following initial exams. See The Wall Street Journal (subscription required), “Private Equity Scrambles to Comply With SEC’s Marketing Rule as Deadline Nears