The following Annual Review is a summary of some of the significant changes and developments that occurred in the past year and certain recommended practices that investment advisers/investment managers to private funds should consider in 2024.
Highlights from this year’s Annual Review include:
- A summary of the new Private Fund Adviser Rules adopted by the SEC in August 2023, which may have seismic impact on the hedge fund and private equity industries if enacted without judicial intervention.
- A summary of SEC examination priorities impacting the private funds industry, including a review of recent staff-level guidance and certain trends in examinations such as an increased focus on alternative data, off-channel electronic communications, ESG, conflicts of interest and fees and expenses.
- A review of recent SEC-enforcement actions related to off-channel electronic communications, cryptocurrencies, SPACs, trading violations, fees and expenses, conflicts-of-interest, valuations and misleading disclosures.
- A review of other SEC policy and rulemaking initiatives, including updates to ESG, cybersecurity and custody rules, as well as revisions to beneficial owner and Form PF reporting regulations.
- Key SEC considerations when reviewing marketing materials, including guidance on complying with the agency’s recently implemented “marketing rule.”
- U.S. and UK tax updates, including an overview of ‘OECD Pillar Two’ efforts to implement a 15% minimum tax on multi-national enterprises above a certain revenue threshold.
- A comprehensive overview of required U.S. regulatory filings across the many agencies overseeing the private funds industry, including a quick-reference table for monthly filings in 2024.
