On August 23, 2023, the U.S. Securities and Exchange Commission (SEC) approved substantial changes to the Investment Advisers Act of 1940 (the Advisers Act). The decision, passed by a vote of three-to-two, will notably impact private fund advisers across the globe.
The SEC firmly stated that these new rules, known collectively as the New Rules, aim to safeguard private fund investors. This announcement comes in response to the notable increase in assets under management by private fund advisers. Our recent reports show that the total amount has escalated to an impressive $22.6 trillion for ball kinds of investors, comprising retirement funds.
The specifics of the new rules and their direct implications to private fund advisers are yet to be fully unpacked in the following days. However, the legal community anticipates that these changes will shape the operational framework of private fund advisers and heighten the level of due diligence required from them.
Legal professionals and stakeholders interested in reading the full details of the new changes can access the original report released by Faegre Drinker Biddle & Reath LLP.
As we continue to observe the impact of these changes, we strongly encourage legal professionals in the field to stay updated for detailed analyses and implications of the New Rules, as they unfold.