Year in Review
The year 2022 was a busy time for private fund regulations in the U.S. The Securities and Exchange Commission (“SEC”) released various risk alerts, issued significant enforcement actions, and proposed regulations for additional transparency from private fund managers.
SEC Exam Findings and Risk Alerts. The SEC announced that it filed 760 enforcement actions in 2022, which is an increase of 9% from the previous year,[1] and issued various risk alerts which identified common deficiencies for investment advisers.
New Regulations. The updated advertising and marketing rules went into effect in November and require investment advisers to adhere to higher standards when communicating testimonials, endorsements, third-party ratings, and hypothetical performance in advertisements.
Proposed Regulations. The SEC drafted various proposed updates to the existing regulations in 2022. Notable are the expectations identified in the proposals for the Private Fund Advisers Rule, Cybersecurity Risk Management Rule and the recently proposed Outsourcing Rule that, if adopted as proposed, would require registered investment advisers to meet specific requirements…
