The US Appeals Court Overturns the SEC Private Fund Adviser Rules
In August, the Securities and Exchange Commission (‘SEC’) issued the new Private Fund Adviser Rules which required fund managers to issue quarterly performance, detailed fee reports, granular performance metrics and perform annual audits amongst other new requirements with the aim of increasing transparency in the industry.
Contributors
The additional requirements applied to private equity and venture capital funds as well as managers of funds for institutional investors such as pension funds and endowments.
These were burdensome requirements that would have led to significantly more detailed reporting being delivered to investors in tighter timeframes, as well as an increased burden on fund managers to disclose what was previously considered to be confidential information.
Last week a US court overturned the SEC requirements which has been positioned as a win for the industry. This means that fund managers will not be required to meet the new requirements, as of now. It is anticipated that the SEC may petition for this ruling to be re-considered, Langham Hall will continue to monitor any developments.
