September 6, 2023
Podcast: New SEC Private Funds Rules – What Is Happening and What You Need to Know
On August 23, the Securities and Exchange Commission (SEC) finalized the Private Funds Rules, which aim to enhance the protections afforded to investors in private funds that are managed by private fund advisers. In a new podcast, General Counsel and Executive Vice President Amber Allen and Troutman Pepper Partner Genna Garver discuss the new rules and cover topics including: relief regarding some of the final changes versus the proposed version; potential headaches for clients; surprises; and recommended next steps for private fund clients.
What’s more: Six industry groups filed a lawsuit in the U.S. Court of Appeals for the Fifth Circuit against the SEC challenging the new Private Fund Adviser rule, arguing that the rules exceed the SEC’s statutory authority and will increase costs for investors, among other things. It’s impossible to predict the ultimate outcome of the case and whether the rule will be vacated entirely or in part, or to predict the impact, if any, on the SEC’s fiduciary duty clarifications set forth in the rule’s adopting release. However, the rule is and will remain final unless and until vacated by the court.
To listen to the podcast on the Private Fund Rules, click here.