September 14, 2023
On September 14, the Private Fund Adviser Rules were published in the Federal Register. According to the Federal Register, the rules are effective Nov. 13, 2023, and comments regarding the collection of information requirements within the meaning of the Paperwork Reduction Act of 1995 should be received on or before October 16, 2023.
While 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, the rule is and will remain final unless and until vacated by the court. Advisers should plan to comply based on the dates outlined below.
Compliance dates are as follows Compliance dates are as follows for Large Private Fund Advisers, with $1.5 billion or more in private fund assets, and Smaller Private Fund Advisers, with less than $1.5 billion in private fund assets:
| Rule | Larger Private Fund Advisers | Smaller Private Fund Advisers |
|---|---|---|
| 206(4)-10 Audit Requirement (Registered Advisers) | March 14, 2025 | March 14, 2025 |
| 211(h)(1)-2 Quarterly Statements (Registered Advisers) | March 14, 2025 | March 14, 2025 |
| 211(h)(2)-1 Restricted Activities (Any Investment Adviser*) | September 14, 2024 | March 14, 2025 |
| 211(h)(2)-2 Adviser-Led Secondaries(Registered Advisers) | September 14, 2024 | March 14, 2025 |
| 211(h)(2)-3 Preferential treatment (Any Investment Adviser*) | September 14, 2024 | March 14, 2025 |
*Subject to the exceptions contained in the rule.
| Rule | All Investment Advisers |
|---|---|
| 206(4)-7(b)(Written Documentation of Annual Review of Compliance Program) | November 13, 2023 |
For more information on the Private Fund Adviser Rules, you may read our flash report, Divided SEC Adopts Private Fund Adviser Reforms.
