The United States Securities and Exchange Commission (SEC) has recently passed new rules imposing fresh requirements and obligations on the private fund industry. It is important to note that while these rules are significantly less onerous than originally proposed, they will nonetheless have implications for all private fund advisors. This includes not only registered investment advisers (RIAs) but, in particular circumstances, also exempt reporting advisers (ERAs). This development is of particular interest to APAC investors.
Largely, the extent to which non-US investment advisors will be impacted remains to be seen. The answer largely depends on their particular circumstances, as well as the reach and applicability of the new rules. At this juncture, the specifics of these rules and their potential real-world effects can only be fully assessed once the rules are fully operational and their implementation can be analysed.
However, it is clear that these rules represent a significant change in the existing regulatory landscape, with far-ranging potential implications for the private market investments.
Further details and analysis can be found in the original report covered by Hogan Lovells.